CareDx (CDNA) Surges 16.6%: Is This an Indication of Further Gains?
CareDx CDNA shares ended the last trading session 16.6% higher at $6.31. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.1% loss over the past four weeks.
CareDx scored a strong price increase, driven by investor’s optimism surrounding its impending third quarter 2023 financial results, which is slated to release on Nov 8, post the closing bell.
In the second quarter, the company surpassed the Zacks Consensus Estimate for both earnings and revenues by 57.1% and 24.7% respectively. Besides, CareDx received the industry’s first and only donor-derived cell-free DNA (dd-cfDNA) MolDX approval for lung transplant patients with AlloSure Lung for Medicare patients. This might have boosted further confidence in the stock.
This molecular diagnostics company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -533.3%. Revenues are expected to be $53.66 million, down 32.4% 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 CareDx, 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 CDNA 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 >>>>
CareDx is a member of the Zacks Medical Services industry. One other stock in the same industry, HealthEquity HQY, finished the last trading session 5.8% lower at $64.14. HQY has returned -8.5% over the past month.
HealthEquity's consensus EPS estimate for the upcoming report has changed +1.5% over the past month to $0.49. Compared to the company's year-ago EPS, this represents a change of +29%. HealthEquity currently boasts a Zacks Rank of #1 (Strong Buy).
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CareDx, Inc. (CDNA) : Free Stock Analysis Report
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