GeneDx Holdings Corp. WGS shares soared 19% in the last trading session to close at $79.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.4% loss over the past four weeks.
GeneDx recorded a strong price rise on investors’ optimism surrounding the announcement that its Fabric Genomics company entered a strategic collaboration Galatea Bio, to enhance genetic testing by incorporating both rare pathogenic variant analysis and polygenic risk scoring (PRS) to assess genetic susceptibility to common diseases.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +181.8%. Revenues are expected to be $84.7 million, up 20.1% 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 GeneDx, 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 WGS 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 >>>>
GeneDx belongs to the Zacks Medical Services industry. Another stock from the same industry, Progyny PGNY, closed the last trading session 0.9% lower at $20.79. Over the past month, PGNY has returned 2.2%.
For Progyny, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.42. This represents a change of -2.3% from what the company reported a year ago. Progyny currently has a Zacks Rank of #3 (Hold).
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GeneDx Holdings Corp. (WGS): Free Stock Analysis Report Graco Inc. (GGG): Free Stock Analysis Report Compugen Ltd. (CGEN): Free Stock Analysis Report Progyny, Inc. (PGNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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