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

In the latest trading session, Cumberland Pharmaceuticals (CPIX) closed at $5.44, marking a -1.72% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the pharmaceutical company had gained 13.79% in the past month. In that same time, the Medical sector lost 1.6%, while the S&P 500 lost 0.25%.

Wall Street will be looking for positivity from CPIX as it approaches its next earnings report date. In that report, analysts expect CPIX to post earnings of $0.11 per share. This would mark year-over-year growth of 320%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.65 million, up 49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.40 per share and revenue of $47.36 million. These totals would mark changes of +1433.33% and +16.24%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CPIX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CPIX is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, CPIX is currently trading at a Forward P/E ratio of 13.82. This valuation marks a discount compared to its industry's average Forward P/E of 16.26.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.