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Strength Seen in Exact Sciences (EXAS): Can Its 9.2% Jump Turn into More Strength?

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Exact Sciences (EXAS - Free Report) shares ended the last trading session 9.2% higher at $105.74. 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 24.8% loss over the past four weeks.

The stock extended its rally for the second consecutive day on optimism surrounding the evidence supporting Cologuard and Oncotype DX tests and deep oncology pipeline. The new data, which will be showcased at the 2021 American Society of Clinical Oncology (ASCO) Annual Meeting (virtually from Jun 4 to Jun 8), will highlight the significance of Oncotype DX tests in informing personalized treatment decisions. Further, better-than-expected performance in first-quarter 2021 and a bullish fiscal 2021 outlook provided by the company instill investors’ confidence in the stock.

Price and Consensus

Price Consensus Chart for EXAS

This molecular diagnostics company is expected to post quarterly loss of $0.75 per share in its upcoming report, which represents a year-over-year change of -29.3%. Revenues are expected to be $421.62 million, up 56.8% 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 9.8% 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 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 >>>>


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