Cara (CARA) Surges 14%: Is This an Indication of Further Gains?
Cara Therapeutics CARA shares soared 14% in the last trading session to close at $27.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.2% gain over the past four weeks.
Shares gained as the stock has been added in the S&P SmallCap 600. Cara Therapeutics will replace MTS Systems Corp effective April 8.
Price and Consensus
This biotechnology company is expected to post quarterly loss of $0.62 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $10.15 million, up 25.5% 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 Cara, the consensus EPS estimate for the quarter has been revised 2.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CARA 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 >>>>
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