U.S. markets closed
  • S&P 500

    3,941.48
    -32.27 (-0.81%)
     
  • Dow 30

    31,928.62
    +48.38 (+0.15%)
     
  • Nasdaq

    11,264.45
    -270.83 (-2.35%)
     
  • Russell 2000

    1,764.83
    -27.94 (-1.56%)
     
  • Crude Oil

    110.16
    -0.13 (-0.12%)
     
  • Gold

    1,865.90
    +18.10 (+0.98%)
     
  • Silver

    22.11
    +0.39 (+1.80%)
     
  • EUR/USD

    1.0738
    +0.0041 (+0.39%)
     
  • 10-Yr Bond

    2.7600
    -0.0990 (-3.46%)
     
  • GBP/USD

    1.2539
    -0.0049 (-0.39%)
     
  • USD/JPY

    126.8300
    -1.0580 (-0.83%)
     
  • BTC-USD

    29,363.19
    +85.57 (+0.29%)
     
  • CMC Crypto 200

    654.88
    -0.94 (-0.14%)
     
  • FTSE 100

    7,484.35
    -29.09 (-0.39%)
     
  • Nikkei 225

    26,748.14
    -253.38 (-0.94%)
     

Landec (LNDC) Surges 7.1%: Is This an Indication of Further Gains?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Landec LNDC shares soared 7.1% in the last trading session to close at $11.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.9% loss over the past four weeks.

Shares of Landec have been gaining from optimism surrounding its Lifecore Biomedical business segment. The Lifecore unit, wherein revenues increased 7% during third-quarter fiscal 2021, is being supported by growth in its CDMO (contract development and manufacturing organization) operations, which includes providing value added services to biopharmaceutical and medical device companies. The Lifecore unit is expected to keep growing on the back of industry trends such as rise in drug development and growing demand for vial and syringe capacity. Moreover, the company is on track with turnaround efforts in its Curation Foods business segment.

Price and Consensus

Price Consensus Chart for LNDC
Price Consensus Chart for LNDC

This agricultural and food packaging products company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $130.06 million, down 16.7% 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 Landec, the consensus EPS estimate for the quarter has been revised 95% 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 LNDC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Landec Corporation (LNDC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research