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Applied DNA Sciences (APDN) Moves 13.2% Higher: Will This Strength Last?

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Applied DNA Sciences (APDN - Free Report) shares soared 13.2% in the last trading session to close at $8.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.5% loss over the past four weeks.

Applied DNA Sciences witnessed a solid price appreciation following the announcement that the company is entering into a pro bono Material Transfer agreement with Northwell Health to form a real-time surveillance program for the tracking and detection of SARS-CoV-2 mutations and variants of concern (VoCs) in Northwell’s COVID-positive specimens. Market is also upbeat about Applied DNA Sciences’ recent receipt of a purchase order for its Linea COVID-19 Assay Kit and consumables to run 10,000 tests under a Master Services Agreement with an existing customer.

Price and Consensus

Price Consensus Chart for APDN

This DNA-based security technology company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +77.2%. Revenues are expected to be $2.71 million, up 392.7% 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 Applied DNA Sciences, 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 APDN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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