In the latest trading session, Emergent Biosolutions (EBS) closed at $96.11, marking a -1.58% move from the previous day. This move lagged the S&P 500's daily gain of 0.35%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.37%.
Prior to today's trading, shares of the biopharmaceutical company had lost 1.47% over the past month. This has lagged the Medical sector's gain of 0.51% and the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from EBS as it approaches its next earnings release, which is expected to be November 5, 2020. On that day, EBS is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 69.42%. Meanwhile, our latest consensus estimate is calling for revenue of $451.85 million, up 44.92% from the prior-year quarter.
EBS's full-year Zacks Consensus Estimates are calling for earnings of $6.61 per share and revenue of $1.53 billion. These results would represent year-over-year changes of +127.15% and +38.28%, respectively.
Investors might also notice recent changes to analyst estimates for EBS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% higher. EBS is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, EBS is currently trading at a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 23.82, which means EBS is trading at a discount to the group.
The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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