Rockwell Medical (RMTI) Soars 20.0%: Is Further Upside Left in the Stock?
Rockwell Medical RMTI shares soared 20% in the last trading session to close at $5.46. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.6% gain over the past four weeks.
Rockwell Medical recorded a strong price increase after it announced its entry into a three-year co-promotion services agreement with renowned renal therapy provider, B. Braun Medical Inc. The company’s recent addition to the Russell Microcap Index also raises optimism.
This maker of products used in the treatment of kidney disease and anemia is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +80.4%. Revenues are expected to be $20 million, up 7.1% 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 Rockwell Medical, 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 RMTI 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 >>>>
Rockwell Medical belongs to the Zacks Medical - Products industry. Another stock from the same industry, Canopy Growth Corporation CGC, closed the last trading session 11.4% lower at $0.39. Over the past month, CGC has returned -47.6%.
For Canopy Growth Corporation , the consensus EPS estimate for the upcoming report has changed -3% over the past month to -$0.09. This represents a change of +87.1% from what the company reported a year ago. Canopy Growth Corporation currently has a Zacks Rank of #3 (Hold).
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