Fortrea Holdings Inc. (FTRE) Moves 5.5% Higher: Will This Strength Last?

Fortrea Holdings Inc. (FTRE) shares ended the last trading session 5.5% higher at $17.54. 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 12.5% gain over the past four weeks.

The sudden stock price rally reflects investors’ growing confidence in Fortrea Holdings’ ability to generate sustained revenues, underpinned by its global presence in nearly 100 countries and its expertise in comprehensive phase I – IV clinical trial management, clinical pharmacology, and consulting services. FTRE’s platform is designed to provide flexible, efficient solutions worldwide, helping customers speed up biopharmaceutical and medical device development.

This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -11.1%. Revenues are expected to be $664.82 million, down 4.6% 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 Fortrea Holdings Inc., the consensus EPS estimate for the quarter has been revised 3.3% 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 FTRE 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 >>>>

Fortrea Holdings Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Prothena (PRTA), closed the last trading session 1.4% lower at $8.97. Over the past month, PRTA has returned -15.2%.

Prothena's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.45. Compared to the company's year-ago EPS, this represents a change of +58.3%. Prothena currently boasts a Zacks Rank of #3 (Hold).

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

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