CareDx CDNA shares rallied 35.6% in the last trading session to close at $40.34. 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 26.7% gain over the past four weeks.
CareDx scored a strong price increase, driven by investor’s optimism following its announcement of the finalization of the Medicare Local Coverage Determination (LCD) process related to molecular testing for solid organ allograft rejection. The final policy affirms coverage across CareDx’s transplant surveillance offerings in kidney, heart, and lung.
This molecular diagnostics company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +120%. Revenues are expected to be $114.35 million, up 31.9% 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 CareDx, 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 CDNA 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 >>>>
CareDx is a member of the Zacks Medical Services industry. One other stock in the same industry, HCA Healthcare HCA, finished the last trading session 1.8% higher at $385.74. HCA has returned -2.4% over the past month.
For HCA, the consensus EPS estimate for the upcoming report has changed -1.3% over the past month to $7.38. This represents a change of +7.9% from what the company reported a year ago. HCA currently has a Zacks Rank of #4 (Sell).
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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
CareDx, Inc. (CDNA) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
