In the latest trading session, Cumberland Pharmaceuticals (CPIX) closed at $5.70, marking a -1.38% move from the previous day. This change lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 1.4%.
Prior to today's trading, shares of the pharmaceutical company had gained 17.24% over the past month. This has outpaced the Medical sector's loss of 2.31% and the S&P 500's gain of 0.38% in that time.
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. Meanwhile, our latest consensus estimate is calling for revenue of $12.65 million, up 49% from the prior-year quarter.
CPIX's full-year Zacks Consensus Estimates are calling for earnings of $0.40 per share and revenue of $47.36 million. These results would represent year-over-year changes of +1433.33% and +16.24%, respectively.
Any recent changes to analyst estimates for CPIX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CPIX is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, CPIX is holding a Forward P/E ratio of 14.45. This valuation marks a discount compared to its industry's average Forward P/E of 16.75.
The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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