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Organogenesis (ORGO) shares soared 7.7% in the last trading session to close at $17.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.9% loss over the past four weeks.
Earlier this month, the company reported record quarterly revenues of $102.6 million in the first quarter of 2021. This might have driven the rally. The company’s efforts to develop its pipeline candidates, offering a portfolio of bioactive and acellular biomaterials products in wound care and surgical biologics, is also a positive.
Price and Consensus
This regenerative medicine company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +240%. Revenues are expected to be $105.2 million, up 52.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Organogenesis, the consensus EPS estimate for the quarter has been revised 225% 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 ORGO 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 >>>>
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Organogenesis Holdings Inc. (ORGO) : Free Stock Analysis Report
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