Cumberland Pharmaceuticals (CPIX) Dips More Than Broader Markets: What You Should Know

Cumberland Pharmaceuticals (CPIX) closed the most recent trading day at $5.35, moving -0.93% from the previous trading session. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.16%.

Prior to today's trading, shares of the pharmaceutical company had lost 4.59% over the past month. This has lagged the Medical sector's loss of 3.93% and the S&P 500's gain of 2.07% in that time.

Investors will be hoping for strength from CPIX as it approaches its next earnings release. In that report, analysts expect CPIX to post earnings of -$0.11 per share. This would mark a year-over-year decline of 22.22%. Meanwhile, our latest consensus estimate is calling for revenue of $10.70 million, up 24.56% from the prior-year quarter.

CPIX's full-year Zacks Consensus Estimates are calling for earnings of -$0.24 per share and revenue of $50.11 million. These results would represent year-over-year changes of -700% and +22.99%, respectively.

Investors might also notice recent changes to analyst estimates for CPIX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CPIX is currently sporting a Zacks Rank of #1 (Strong Buy).

The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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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.