Bausch (BHC) Soars 6.4%: Is Further Upside Left in the Stock?
Bausch Health (BHC) shares rallied 6.4% in the last trading session to close at $10.49. 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 7.4% gain over the past four weeks.
Of late, Bausch is having a good run. The recent gain is most likely a reflection of the company’s efforts to expand its portfolio and pay down debt. Bausch beat on both revenues and earnings in the fourth quarter. The Salix business maintains its momentum due to Xifaxan, and the approval of additional drugs will boost the top line.
This drugmaker is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +42.3%. Revenues are expected to be $2.14 billion, up 9.9% 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 Bausch, the consensus EPS estimate for the quarter has been revised 5.4% 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 BHC 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 >>>>
Bausch belongs to the Zacks Medical - Generic Drugs industry. Another stock from the same industry, Teva Pharmaceutical Industries Ltd. (TEVA), closed the last trading session 2.1% higher at $14.43. Over the past month, TEVA has returned 6.3%.
Teva Pharmaceutical Industries' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.51. Compared to the company's year-ago EPS, this represents a change of +27.5%. Teva Pharmaceutical Industries currently boasts a Zacks Rank of #3 (Hold).
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Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report
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