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Virgin Galactic (SPCE) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Virgin Galactic (SPCE - Free Report) closed at $1.76, marking a -0.56% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.24%.

Prior to today's trading, shares of the company had lost 23.04% over the past month. This has lagged the Aerospace sector's loss of 0.13% and the S&P 500's gain of 6.45% in that time.

Market participants will be closely following the financial results of Virgin Galactic in its upcoming release. The company is predicted to post an EPS of -$0.30, indicating a 45.45% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.99 million, up 243.1% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Virgin Galactic. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.18% higher. Virgin Galactic currently has a Zacks Rank of #2 (Buy).

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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