Emergent Biosolutions (EBS) Gains As Market Dips: What You Should Know
Emergent Biosolutions (EBS) closed the most recent trading day at $99.55, moving +1.86% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Heading into today, shares of the biopharmaceutical company had lost 4.5% over the past month, lagging the Medical sector's gain of 0.71% and the S&P 500's gain of 3.19% in that time.
Wall Street will be looking for positivity from EBS as it approaches its next earnings report date. The company is expected to report EPS of $2.05, up 69.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $451.85 million, up 44.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.61 per share and revenue of $1.53 billion, which would represent changes of +127.15% and +38.28%, respectively, from the prior year.
Any recent changes to analyst estimates for EBS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% higher. EBS currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note EBS's current valuation metrics, including its Forward P/E ratio of 14.78. This represents a discount compared to its industry's average Forward P/E of 26.35.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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.