Journey Medical (DERM) Surges 9.1%: Is This an Indication of Further Gains?

Journey Medical Corporation (DERM) shares ended the last trading session 9.1% higher at $7.19. 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 30.2% gain over the past four weeks.

The sudden rise in the stock price can be attributed to the positive investor mindset regarding the increasing sales of its portfolio of marketed branded and generic drugs for the treatment of various dermatological conditions.

This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +54.7%. Revenues are expected to be $11.89 million, down 8.8% 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 Journey Medical, the consensus EPS estimate for the quarter has been revised 1100% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DERM 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 >>>>

Journey Medical is part of the Zacks Medical - Drugs industry. Assertio (ASRT), another stock in the same industry, closed the last trading session 8.2% lower at $0.63. ASRT has returned -15.7% in the past month.

For Assertio

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This article originally published on Zacks Investment Research (zacks.com).

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