Emergent Biosolutions (EBS) closed at $89.87 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500’s 0.62% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.94%.
Prior to today’s trading, shares of the biopharmaceutical company had gained 16.91% over the past month. This has outpaced the Medical sector’s gain of 2.18% and the S&P 500’s gain of 3.51% in that time.
EBS will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2020. In that report, analysts expect EBS to post earnings of $0.53 per share. This would mark year-over-year growth of 341.67%.
EBS’s full-year Zacks Consensus Estimates are calling for earnings of $4.23 per share and revenue of $1.19 billion. These results would represent year-over-year changes of +45.36% and +7.69%, respectively.
It is also important to note the recent changes to analyst estimates for EBS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.96% higher. EBS currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note EBS’s current valuation metrics, including its Forward P/E ratio of 21.03. Its industry sports an average Forward P/E of 25.77, so we one might conclude that EBS is trading at a discount comparatively.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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