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Quidel (QDEL) Stock Jumps 11.2%: Will It Continue to Soar?

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Quidel (QDEL - Free Report) shares rallied 11.2% in the last trading session to close at $101.74. 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 31.3% loss over the past four weeks.

Quidel scored a strong price increase driven by its encouraging preliminary revenues for fourth-quarter 2021. Per the preliminary report, fourth-quarter 2021 revenues are estimated to be $633-$637 million on a reported basis. Per the company, the strong revenue uptick in the fourth quarter resulted from a significant surge in demand in multiple markets for its SARS-related products on the back of continued rise in infections due to the spread of the highly contagious Delta and Omicron variants of coronavirus. Quidel is expected to report its fourth quarter results in February.

This medical diagnostics company is expected to post quarterly earnings of $4.89 per share in its upcoming report, which represents a year-over-year change of -55.8%. Revenues are expected to be $430 million, down 46.9% 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 Quidel, 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 QDEL going forward to see if this recent jump can turn into more strength down the road.

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

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