In the latest trading session, Cumberland Pharmaceuticals (CPIX) closed at $5.56, marking a -0.18% move from the previous day. This change lagged the S&P 500's 0.12% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.02%.
Coming into today, shares of the pharmaceutical company had lost 0.71% in the past month. In that same time, the Medical sector gained 5.24%, while the S&P 500 gained 4.42%.
CPIX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.11, up 320% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.65 million, up 49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.40 per share and revenue of $47.36 million, which would represent changes of +1433.33% and +16.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CPIX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CPIX is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CPIX is holding a Forward P/E ratio of 13.93. Its industry sports an average Forward P/E of 17.73, so we one might conclude that CPIX is trading at a discount comparatively.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% 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.
To follow CPIX in the coming trading sessions, be sure to utilize Zacks.com.
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