Guardant Health (GH) shares rallied 6.3% in the last trading session to close at $35.88. 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 8.4% loss over the past four weeks.
The company’s blood test, Shield, is approved by the FDA for colorectal cancer (CRC) screening in adults aged 45 and older who are at average risk for the disease. According to Guardant Health, Shield provides an easy, convenient and pleasant screening option for patients, which could potentially improve CRC screening rates. The growing optimism and the positive reception of Shield among physicians and patients might have driven the recent share price rally.
This provider of oncology testing services is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of +67.7%. Revenues are expected to be $186.25 million, up 20.1% 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 Guardant Health, 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 GH 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 >>>>
Guardant Health is part of the Zacks Medical - Biomedical and Genetics industry. Arcellx, Inc. (ACLX), another stock in the same industry, closed the last trading session 5.2% lower at $75.01. ACLX has returned -6.4% in the past month.
For Arcellx
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Arcellx, Inc. (ACLX) : Free Stock Analysis Report
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