Strength Seen in Harrow (HROW): Can Its 17.8% Jump Turn into More Strength?
Harrow Health HROW shares ended the last trading session 17.8% higher at $21.53. 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 3.4% loss over the past four weeks.
Harrow scored a strong price rise, driven by optimism surrounding the company’s recent announcement to acquire Japanese pharmaceutical company, Santen’s branded ophthalmic portfolio.
The addition of several high utility and trusted products positions the company’s portfolio to be one of the most comprehensive in the domestic market. The acquisition advances Harrow’s goal of becoming a leader in the top tier of ophthalmic pharmaceutical companies in United States, which might have boosted confidence in the stock.
This pharmaceutical and drug compounding company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -200%. Revenues are expected to be $29.32 million, up 25.7% 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 Harrow, 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 HROW 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 >>>>
Harrow is a member of the Zacks Medical Services industry. One other stock in the same industry, Progyny PGNY, finished the last trading session 0.7% lower at $40.22. PGNY has returned 4.9% over the past month.
Progyny's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.10. Compared to the company's year-ago EPS, this represents a change of +11.1%. Progyny currently boasts a Zacks Rank of #3 (Hold).
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