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CryoLife (CRY) Soars 24.2%: Is Further Upside Left in the Stock?

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CryoLife shares rallied 24.2% in the last trading session to close at $29.18. 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 3.2% gain over the past four weeks.

The stock rallied following the release of first-quarter fiscal 2021 results on Apr 29, showing significant contraction in net loss compared to the year-ago period. CyoLife reported net loss of 8 cents per share, narrower than the Zacks Consensus Estimate of a loss of 11 cents. Revenues rose to $71.1 million, surpassing the Zacks Consensus Estimate by 15.2%. The better-than-expected numbers instill investors’ confidence in the stock.

Price and Consensus

Price Consensus Chart for CRY

This biological medical device maker is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $68 million, up 26.5% 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 CryoLife, 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 CRY 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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