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PerkinElmer (PKI) Moves 6.9% Higher: Will This Strength Last?

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PerkinElmer (PKI - Free Report) shares soared 6.9% in the last trading session to close at $136.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.9% loss over the past four weeks.

PerkinElmer saw a strong price increase, courtesy of its encouraging first-quarter 2021 results. While reported earnings surpassed the Zacks Consensus Estimate by 22.8%, revenues beat the consensus mark by 13.7%. Market is also optimistic regarding the company’s raised 2021 revenue and earnings guidance (compared to the prior announcement).

Price and Consensus

Price Consensus Chart for PKI

This maker of scientific instruments is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of +50.3%. Revenues are expected to be $1.05 billion, up 29.3% 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 PerkinElmer, 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 PKI 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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