Haemonetics (HAE) Surges 5.2%: Is This an Indication of Further Gains?
Haemonetics HAE shares soared 5.2% in the last trading session to close at $88.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% gain over the past four weeks.
Haemonetics scored a strong price increase, on investors’ optimism surrounding the company’s upcoming first quarter 2024 financial results, which is slated to release on Aug 8 before the closing bell.
The Zacks Consensus Estimate for the fiscal 2024 first quarter revenues suggest a year-over-year growth of 13.9% and an earnings growth of 31% compared to the prior-year reported figure. Haemonetics achieved the milestone with $1 billion annual revenue for the fiscal 2023, fueled by the success of its unique value drivers. This might have boosted confidence in the stock.
This provider blood management systems for health care providers and blood collectors is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +31%. Revenues are expected to be $297.92 million, up 13.9% 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 Haemonetics, 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 HAE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Haemonetics belongs to the Zacks Medical - Products industry. Another stock from the same industry, Eagle Pharmaceuticals EGRX, closed the last trading session 0.1% lower at $18.35. Over the past month, EGRX has returned -2.7%.
For Eagle Pharmaceuticals , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.07. This represents a change of -31.4% from what the company reported a year ago. Eagle Pharmaceuticals currently has a Zacks Rank of #3 (Hold).
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