Organogenesis (ORGO) shares rallied 5.3% in the last trading session to close at $5.19. 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 0.4% gain over the past four weeks.
Shares of the company were high driven by optimism around growth for the drug/biotech sector in the ongoing year.
This regenerative medicine company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -46.7%. Revenues are expected to be $121 million, down 1.8% 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 Organogenesis, 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 ORGO 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).
Organogenesis is part of the Zacks Medical - Drugs industry. OptiNose (OPTN), another stock in the same industry, closed the last trading session 4.5% lower at $3.63. OPTN has returned 45.6% in the past month.
For OptiNose, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.22. This represents a change of +50% from what the company reported a year ago. OptiNose currently has a Zacks Rank of #3 (Hold).
To read this article on Zacks.com click here.
Image sourced from Shutterstock
