Taro (TARO) Surges 6.6%: Is This an Indication of Further Gains?
Taro (TARO) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the...
Taro Pharmaceutical (TARO) shares ended the last trading session 6.6% higher at $48.60. 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 12.3% loss over the past four weeks.
Shares of the company were high as optimism builds around growth for the drug/biotech sector in 2022.
This drug maker is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +20.9%. Revenues are expected to be $157.01 million, up 12% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Taro, 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 TARO 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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Taro Pharmaceutical Industries Ltd. (TARO): Free Stock Analysis Report
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