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Kamada (KMDA) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Kamada (KMDA) closed the most recent trading day at $5.95, moving -1.16% from the previous trading session. This change lagged the S&P 500's 0.35% gain on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.7%.

Coming into today, shares of the biopharmaceutical had gained 1.69% in the past month. In that same time, the Medical sector gained 1.51%, while the S&P 500 gained 5.14%.

KMDA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.05, up 66.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $22.87 million, up 31.14% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.47 per share and revenue of $126.91 million, which would represent changes of -17.54% and +10.87%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for KMDA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KMDA currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, KMDA is currently trading at a Forward P/E ratio of 12.9. Its industry sports an average Forward P/E of 20.98, so we one might conclude that KMDA is trading at a discount comparatively.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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