Certara, Inc. (CERT) shares soared 8% in the last trading session to close at $10.51. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.6% loss over the past four weeks.
Earlier this month, the company released a new version of the Simcyp Simulator for physiologically-based pharmacokinetic (PBPK) modeling, which forecasts the behavior of drugs in different body tissues. Per management, the latest version cements Certara’s position as a leader in PBPK modeling in drug development and regulatory decision-making. This might have driven the recent share price rally.
This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $103.91 million, up 7.5% 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 Certara, 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 CERT 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 >>>>
Certara is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Roivant Sciences Ltd. (ROIV), finished the last trading session 2.4% lower at $9.65. ROIV has returned -6.7% over the past month.
Montes Archimedes Acquisition's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.16. Compared to the company's year-ago EPS, this represents a change of +30.4%. Montes Archimedes Acquisition currently boasts a Zacks Rank of #3 (Hold).
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Certara, Inc. (CERT): Free Stock Analysis Report Roivant Sciences Ltd. (ROIV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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