Strength Seen in Veracyte (VCYT): Can Its 13.0% Jump Turn into More Strength?

Veracyte VCYT shares soared 13% in the last trading session to close at $32.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.1% loss over the past four weeks.

Veracyte scored a strong price increase on investors’ optimism surrounding its impending first quarter 2025 financial results, expected to release on May. 6, after the market closes. In the last reported fourth quarter, both the top and bottom lines surpassed the Zacks Consensus Estimate by 1.6% and 24.1%, respectively.

This molecular diagnostic company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +1150%. Revenues are expected to be $110.54 million, up 14.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Veracyte, the consensus EPS estimate for the quarter has been revised 7.4% 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 VCYT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Veracyte is part of the Zacks Medical - Instruments industry. Glaukos GKOS, another stock in the same industry, closed the last trading session 13.7% higher at $93.55. GKOS has returned -15.9% in the past month.

Glaukos' consensus EPS estimate for the upcoming report has changed +0.9% over the past month to -$0.33. Compared to the company's year-ago EPS, this represents a change of +52.9%. Glaukos currently boasts a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research