Schrodinger (SDGR) Surges 7.6%: Is This an Indication of Further Gains?
Schrodinger, Inc. SDGR shares soared 7.6% in the last trading session to close at $32.6. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 50.9% gain over the past four weeks.
Schrodinger scored a strong price increase on investors’ optimism following the announcement of formation of Tectora, a new biotechnology company co-founded by Schrodinger, New Enterprise Associates (NEA) and RA Capital Management. Tectora will focus on developing innovative therapies for immunology and inflammation. The company also secured $55 million in Series A funding from NEA and RA Capital.
This company is expected to post quarterly loss of $0.66 per share in its upcoming report, which represents a year-over-year change of -46.7%. Revenues are expected to be $46.02 million, down 15.3% 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 Schrodinger, the consensus EPS estimate for the quarter has been revised 72.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SDGR 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 >>>>
Schrodinger is part of the Zacks Medical Info Systems industry. Nyxoah SA NYXH, another stock in the same industry, closed the last trading session 3.7% higher at $1.41. NYXH has returned -16.1% in the past month.
Nyxoah's consensus EPS estimate for the upcoming report has changed +2.3% over the past month to -$0.24. Compared to the company's year-ago EPS, this represents a change of +67.6%. Nyxoah currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
