Exact Sciences (EXAS) Surges 6.9%: Is This an Indication of Further Gains?
Exact Sciences EXAS shares ended the last trading session 6.9% higher at $45.15. 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 15.3% loss over the past four weeks.
Exact Sciences recorded a strong price surge on investors’ optimism surrounding the company’s long-term supply agreement with Ultima Genomics, Inc. for the latter’s next-generation sequencing (NGS) technologies. The collaboration intends to lower sequencing costs to enhance patient access to genomics-based testing and human health. It will leverage Ultima's sequencing technology to develop one or more of Exact Sciences' advanced cancer diagnostic tests. Exact Sciences also became an investor in Ultima, and joined the ongoing early access program for its UG 100 platform, as part of the agreement.
This molecular diagnostics company is expected to post quarterly loss of $1.08 per share in its upcoming report, which represents a year-over-year change of -4.9%. Revenues are expected to be $497.15 million, up 14.3% 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 Exact Sciences, the consensus EPS estimate for the quarter has been revised 1.3% 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 EXAS 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 >>>>
Exact Sciences belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Dynavax Technologies DVAX, closed the last trading session 0.4% higher at $12.33. Over the past month, DVAX has returned 5.1%.
Dynavax Technologies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. Compared to the company's year-ago EPS, this represents a change of +1000%. Dynavax Technologies currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
Dynavax Technologies Corporation (DVAX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
