Shares of Black Diamond (BDTX) have been strong performers lately, with the stock up 22.9% over the past month. The stock hit a new 52-week high of $4.65 in the previous session. Black Diamond has gained 115.9% since the start of the year compared to the 4.6% gain for the Zacks Medical sector and the 15.9% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 6, 2025, Black Diamond reported EPS of -$0.15 versus consensus estimate of -$0.22.
For the current fiscal year, Black Diamond is expected to post earnings of $0.46 per share on $70 in revenues.
Valuation Metrics
While Black Diamond has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Black Diamond has a Value Score of B. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Black Diamond currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Black Diamond fits the bill. Thus, it seems as though Black Diamond shares could have a bit more room to run in the near term.
How Does BDTX Stack Up to the Competition?
Shares of BDTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Emergent Biosolutions Inc. (EBS). EBS has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Emergent Biosolutions Inc. beat our consensus estimate by 983.33%, and for the current fiscal year, EBS is expected to post earnings of -$0.45 per share on revenue of $809.2 million.
Shares of Emergent Biosolutions Inc. have gained 19.7% over the past month, and currently trade at a forward P/E of 9.14X and a P/CF of 5.66X.
The Medical - Biomedical and Genetics industry is in the top 34% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BDTX and EBS, even beyond their own solid fundamental situation.
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Black Diamond Therapeutics, Inc. (BDTX): Free Stock Analysis Report Emergent Biosolutions Inc. (EBS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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