Strength Seen in Nutriband Inc. (NTRB): Can Its 22% Jump Turn into More Strength?
Nutriband Inc. (NTRB) shares soared 22% in the last trading session to close at $10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 36.9% loss over the past four weeks.
The company has a robust portfolio of transdermal pharmaceutical products, which might have been driving the rally. Its lead product is abuse deterrent fentanyl transdermal system which is being developed to provide clinicians/patients with an abuse deterrent transdermal fentanyl product for use in managing chronic pain requiring opioid therapy. This is also a positive.
This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +125%. Revenues are expected to be $0.71 million, up 787.5% 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 Nutriband 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 NTRB 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 >>>>
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