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Adma Biologics (ADMA) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Adma Biologics (ADMA - Free Report) closed at $19.50, marking a -1.37% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.08%.

Heading into today, shares of the infectious disease drug developer had gained 19.31% over the past month, outpacing the Medical sector's loss of 3.6% and the S&P 500's gain of 1.21% in that time.

Market participants will be closely following the financial results of Adma Biologics in its upcoming release. In that report, analysts expect Adma Biologics to post earnings of $0.13 per share. This would mark year-over-year growth of 1200%. Meanwhile, the latest consensus estimate predicts the revenue to be $107.25 million, indicating a 59.41% increase compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Adma Biologics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Adma Biologics is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Adma Biologics has a Forward P/E ratio of 40.35 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.34.

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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