CareDx CDNA shares ended the last trading session 11.2% higher at $24.91. 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 5.2% loss over the past four weeks.
CareDx scored a strong price rise on investors’ optimism surrounding its impending fourth-quarter 2024 financial results, expected to release on Feb. 26 post the closing bell. The company’s preliminary results revealed an approximately 30% year-over-year growth in the fourth-quarter revenues. Testing services volume grew for the sixth consecutive quarter, rising 14% compared to the prior year. Adjusted EBITDA is expected to be a gain of between $25 million to $26 million.
This molecular diagnostics company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +141.2%. Revenues are expected to be $85.5 million, up 30.4% 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 CareDx, the consensus EPS estimate for the quarter has been revised 13.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CDNA 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 >>>>
CareDx belongs to the Zacks Medical Services industry. Another stock from the same industry, LifeMD, Inc. LFMD, closed the last trading session 5.5% higher at $6.89. Over the past month, LFMD has returned 37.8%.
LifeMD's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. Compared to the company's year-ago EPS, this represents a change of +50%. LifeMD currently boasts a Zacks Rank of #3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
