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Icon PLC ICLR shares soared 4.4% in the last trading session to close at $215.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.3% loss over the past four weeks.
ICON recorded a strong price increase following its announcement of the completion of its acquisition of PRA Health Sciences, thus creating an advanced healthcare intelligence and clinical research organisation. The combined company, which will retain the name ICON, will focus on leveraging data, applying technology and accessing a diverse patient pool to accelerate drug development, raising optimism.
This contract research organization is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of +62.5%. Revenues are expected to be $846.42 million, up 36.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Icon PLC, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ICLR 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 >>>>
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