Ginkgo Bioworks Holdings, Inc. (DNA) shares rallied 18.9% in the last trading session to close at $11.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 36.1% gain over the past four weeks.
The sudden soaring of the stock price can be attributed to positive investor expectations regarding the potential of Ginkgo’s proprietary cell programming platforms, Foundry and Codebase. The company offers R&D services utilizing these assets under collaboration and license agreements. DNA also provides end-to-end biomonitoring and bioinformatic support services to public health authorities.
This company is expected to post quarterly loss of $1.44 per share in its upcoming report, which represents a year-over-year change of +55%. Revenues are expected to be $43 million, down 23.5% 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 Ginkgo Bioworks, the consensus EPS estimate for the quarter has been revised 12.1% 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 DNA 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 >>>>
Ginkgo Bioworks is part of the Zacks Medical - Biomedical and Genetics industry. Novavax (NVAX), another stock in the same industry, closed the last trading session 1.1% lower at $6.3. NVAX has returned -13.2% in the past month.
Novavax's consensus EPS estimate for the upcoming report has changed -46.9% over the past month to -$0.12. Compared to the company's year-ago EPS, this represents a change of -112.1%. Novavax currently boasts a Zacks Rank of #3 (Hold).
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Ginkgo Bioworks Holdings, Inc. (DNA): Free Stock Analysis Report Novavax, Inc. (NVAX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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