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Healthcare Stocks' Q2 Earnings on Aug 10: QHC, CDNA & CGIX

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Medical is one of the 10 sectors in the S&P 500 cohort that is expected to witness earnings growth in the second quarter. The sector’s earnings are likely to increase 4.4% on a revenue hike of 7.7%.  

We note that 433 S&P companies have already reported their quarterly numbers, with 70.7% beating EPS estimates and 52.7% surpassing the consensus mark for the top line.

As per the latest Zacks Earnings Trend report, overall second-quarter earnings for the S&P 500 companies are expected to be down 3.5% year over year on revenue decline of 0.4%.

Healthcare is an important component of the Medical sector and is expected to follow the earnings growth trajectory in the quarter.

Here, we take a look at three healthcare stocks scheduled to report their second-quarter figures on Aug 10:

Quorum Health Corporation is an operator and manager of general acute care hospitals and outpatient services, primarily in the U.S. We expect Quorum to beat earnings as it has a favorable combination of Zacks Rank #3 (Hold) and +63.64% Earnings ESP. The Most Accurate estimate for the company is pegged at 18 cents, while the Zacks Consensus Estimate stands at 11 cents.

QUORUM HEALTH Price and EPS Surprise

QUORUM HEALTH Price and EPS Surprise | QUORUM HEALTH Quote

As per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Headquartered in Brisbane, CA, CareDx Inc (CDNA - Free Report) is a molecular diagnostics company focused on the discovery, development and commercialization of clinically differentiated and high-valued diagnostic solutions for transplant patients.

We believe the company is poised to gain market position with the outstanding kidney transplant programs in the ‘multicenter kidney transplant’ study, also known as DART. Moreover, the recent collaboration with QIAGEN is likely to fortify the company’s market position by enhancing the transplant-lab-testing workflow.

CAREDX INC Price and EPS Surprise

CAREDX INC Price and EPS Surprise | CAREDX INC Quote

However, our proven model does not predict a beat for the company, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%. We note that the Most Accurate estimate and the Zacks Consensus Estimate for CareDx are pegged at a loss of 30 cents.

Cancer Genetics Inc operates as a diagnostics company, focused on developing and commercializing proprietary genomic tests and services to improve the diagnosis, prognosis and response to treatment of cancer.

The recent partnership with H3 Biomedicine and the receipt of New York State approval for its unique next generation sequencing (NGS)-based Focus::CLL™ panel are noteworthy developments for the company, in our view.

CANCER GENETICS Price and EPS Surprise

CANCER GENETICS Price and EPS Surprise | CANCER GENETICS Quote

However, our model does not conclusively show that the company is likely to beat estimates, given the combination of a Zacks Rank #3 and Earnings ESP of 0.00%. Notably, the Most Accurate estimate and the Zacks Consensus Estimate for the company stand at a loss of 33 cents.

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