Journey Medical Corporation (DERM) shares soared 16.8% in the last trading session to close at $7.39. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% loss 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.
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 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. Perspective Therapeutics (CATX), another stock in the same industry, closed the last trading session 11.5% higher at $2.14. CATX has returned -23.8% in the past month.
For Perspective Therapeutics
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Journey Medical Corporation (DERM): Free Stock Analysis Report Perspective Therapeutics, Inc. (CATX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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