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GenMark Diagnostics (GNMK) Soars 29.6%: Is Further Upside Left in the Stock?

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GenMark Diagnostics shares ended the last trading session 29.6% higher at $23.98. 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 17.6% loss over the past four weeks.

GenMark Diagnostics recorded a solid price appreciation driven by optimism surrounding the buyout deal, wherein the Swiss pharma giant Roche will fully acquire GenMark Diagnostics (at a price of $24.05 per share) in an all-cash transaction worth $1.8 billion. As part of Roche, GenMark Diagnostics will be able to advance its goal to aid rapid diagnosis of infectious disease to improve patient outcomes. Roche’s diagnostic healthcare solutions will help GenMark Diagnostics to offer a complete portfolio of molecular diagnostic solutions to customers globally.

Price and Consensus

Price Consensus Chart for GenMark Diagnostics

This molecular diagnostics company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +75%. Revenues are expected to be $51.18 million, up 32.1% 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 GenMark Diagnostics, the consensus EPS estimate for the quarter has been revised 233.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GNMK 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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