Emergent Biosolutions (EBS) Soars 14.4%: Is Further Upside Left in the Stock?
Emergent Biosolutions (EBS) shares ended the last trading session 14.4% higher at $7.24. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.9% gain over the past four weeks.
Emergent BioSolutions’ stock rose as investors reacted positively to new government contracts and financial moves. The company secured a $24 million BARDA contract modification to supply Cyfendus, supporting its anthrax preparedness business. The company also won a three-year Canadian government standing offer to supply Narcan nasal spray, expanding its government business. In addition, the company repurchased $75 million of debt at a discount, strengthening its balance sheet and reducing outstanding debt.
This biopharmaceutical company is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of -134.9%. Revenues are expected to be $123.33 million, down 46.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Emergent Biosolutions, 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 EBS 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 >>>>
Emergent Biosolutions belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, MaxCyte, Inc. (MXCT), closed the last trading session 0.9% higher at $1.08. Over the past month, MXCT has returned -16.4%.
For MaxCyte, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. This represents a change of +33.3% from what the company reported a year ago. MaxCyte currently has a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
