Schrodinger, Inc. (SDGR) Surges 6.6%: Is This an Indication of Further Gains?
Schrodinger, Inc. SDGR shares ended the last trading session 6.6% higher at $40.74. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 38.1% gain over the past four weeks.
Schrodinger scored a strong price increase, driven by the optimism surrounding the company’s recent presentation at the Goldman Sachs 44th Annual Global Healthcare Conference.
Additionally, the market is also upbeat about the company’s impressive performance in the first quarter, backed by strong contributions from the software business and drug discovery collaborations. Schrodinger continues to make excellent progress across its pipeline of proprietary and collaborative programs, further boosting investors’ confidence in the stock.
This company is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of +32.3%. Revenues are expected to be $35.28 million, down 8.3% 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 Schrodinger, Inc., 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 SDGR 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 >>>>
Schrodinger, Inc. is part of the Zacks Medical Info Systems industry. iRhythm Technologies IRTC, another stock in the same industry, closed the last trading session 2.7% lower at $101.41. IRTC has returned -20.4% in the past month.
iRhythm Technologies' consensus EPS estimate for the upcoming report has changed -0.7% over the past month to -$0.75. Compared to the company's year-ago EPS, this represents a change of +5.1%. iRhythm Technologies currently boasts a Zacks Rank of #4 (Sell).
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