Strength Seen in Bausch (BHC): Can Its 8.0% Jump Turn into More Strength?
Bausch Health BHC shares rallied 8% in the last trading session to close at $8.34. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.4% loss over the past four weeks.
Earlier in the week, the company announced that Tom Vadaketh, Executive Vice President, Chief Financial Officer (CFO), resigned from his role and will leave the company next month. Investors reacted negatively to the uncertainty but shares rebound thereafter. While Vadaketh’s exit is a matter of concern, Bausch plans to appoint Chief Accounting Officer John S. Barresi to the role of interim CFO if a permanent replacement is not in place at the time of Vadaketh's departure.
This drugmaker is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +21.1%. Revenues are expected to be $2.15 billion, up 5.2% 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 Bausch, the consensus EPS estimate for the quarter has been revised 3.2% 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 BHC 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 >>>>
Bausch is part of the Zacks Medical - Generic Drugs industry. Doctor Reddy's (RDY), another stock in the same industry, closed the last trading session 0.6% lower at $68.20. RDY has returned -4% in the past month.
For Doctor Reddy's , the consensus EPS estimate for the upcoming report has changed +1.2% over the past month to $0.88. This represents a change of +7.3% from what the company reported a year ago. Doctor Reddy's currently has a Zacks Rank of #1 (Strong Buy).
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Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report
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