Aziyo Biologics, Inc. (AZYO) Moves 7.8% Higher: Will This Strength Last?

Aziyo Biologics, Inc. (AZYO) shares rallied 7.8% in the last trading session to close at $7.23. 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 14.1% gain over the past four weeks.

Aziyo Biologics' stock has been gaining momentum after it announced the appointment of co-founder C. Randal Mills, as its new chief executive officer (CEO) on June 21. Meanwhile, sales of the regnerative medicine company's  CanGaroo and SimpliDerm product lines have been going strong reflecting both new accounts as well as expanded usage. The FDA accepted for review its regulatory application for next generation biomaterial envelope, CanGaroo RM, which has the potential to be the main driver of the comapny's business in the long term. If approved by the FDA, Aziyo Biologics will launch this new product in the second half of 2022.

This company is expected to post quarterly loss of $0.55 per share in its upcoming report, which represents a year-over-year change of -139.1%. Revenues are expected to be $11.76 million, down 3.3% 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 Aziyo Biologics, 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 AZYO 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 >>>>

Aziyo Biologics, Inc. is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Harpoon Therapeutics, Inc. (HARP), finished the last trading session 3.3% lower at $2.08. HARP has returned 9.1% over the past month.

For Harpoon Therapeutics, Inc. , the consensus EPS estimate for the upcoming report has changed +1.7% over the past month to -$0.55. This represents a change of -5.8% from what the company reported a year ago. Harpoon Therapeutics, Inc. currently has a Zacks Rank of #3 (Hold).

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