CareDx (CDNA) Moves 5.5% Higher: Will This Strength Last?

CareDx CDNA shares rallied 5.5% in the last trading session to close at $8.28. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.3% loss over the past four weeks.

CareDx scored a strong price increase, driven by investors’ optimism surrounding the recent appointment of John W. Hanna as the new President and Chief Executive Officer of the company. Hanna joins CareDx with more than two decades of executive leadership at the intersection of new technology development and revenue growth in the molecular diagnostics and life sciences tools industries.

This molecular diagnostics company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -72.7%. Revenues are expected to be $63.63 million, down 17.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For CareDx, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CDNA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

CareDx is a member of the Zacks Medical Services industry. One other stock in the same industry, Medpace MEDP, finished the last trading session 0.7% lower at $382.44. MEDP has returned -1.3% over the past month.

For Medpace, the consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $2.45. This represents a change of +7.9% from what the company reported a year ago. Medpace currently has a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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