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SurModics (SRDX) Soars 6.2%: Is Further Upside Left in the Stock?

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SurModics (SRDX - Free Report) shares rallied 6.2% in the last trading session to close at $36.73. 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 0.1% loss over the past four weeks.

Surmodics recorded a price surge before its first-quarter fiscal 2024 earnings release with the latest Zacks Consensus Estimate showing significant upward revision for its quarterly revenues and earnings compared to the year-ago reported number. The company is expected to release its first-quarter fiscal 2024 earnings on Feb 5. Also, presentation of favorable 24-month data from the SWING Trial, a first-in-human study of the safety and performance of the Sundance Sirolimus Drug-Coated Balloon, at VEITH Symposium raises optimism.

This drug delivery technology company is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of +30%. Revenues are expected to be $29.71 million, up 19.2% 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 SurModics, the consensus EPS estimate for the quarter has been revised 4.5% 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 SRDX 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 >>>>

SurModics is a member of the Zacks Medical - Products industry. One other stock in the same industry, High Tide Inc. (HITI - Free Report) , finished the last trading session 6.8% higher at $1.58. HITI has returned 14.7% over the past month.

High Tide Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of +50%. High Tide Inc. currently boasts a Zacks Rank of #3 (Hold).


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