Yahoo Finance QuidelOrtho (QDEL) Soars 5.0%: Is Further Upside Left in the Stock?
QuidelOrtho QDEL shares soared 5% in the last trading session to close at $94.16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.4% gain over the past four weeks.
QuidelOrtho recorded a strong price increase after it announced robust preliminary revenues for the first quarter of 2023. Per the preliminary results, its non-respiratory product revenues are also expected to be strong. The company is scheduled to release its first-quarter 2023 earnings on May 3.
This medical diagnostics company is expected to post quarterly earnings of $1.40 per share in its upcoming report, which represents a year-over-year change of -88%. Revenues are expected to be $750.25 million, down 25.1% 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 QuidelOrtho, the consensus EPS estimate for the quarter has been revised 17.2% 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 QDEL 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 >>>>
QuidelOrtho is a member of the Zacks Medical - Products industry. One other stock in the same industry, Bio-Rad Laboratories BIO, finished the last trading session 1.3% lower at $479.25. BIO has returned -0.5% over the past month.
Bio-Rad's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.24. Compared to the company's year-ago EPS, this represents a change of -34.4%. Bio-Rad currently boasts a Zacks Rank of #1 (Strong Buy).
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