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Avid Bioservices (CDMO) Gains But Lags Market: What You Should Know

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In the latest trading session, Avid Bioservices (CDMO - Free Report) closed at $18.97, marking a +0.53% move from the previous day. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.28%.

Prior to today's trading, shares of the contract manufacturer had lost 31.95% over the past month. This has lagged the Medical sector's loss of 8.58% and the S&P 500's loss of 5.29% in that time.

Avid Bioservices will be looking to display strength as it nears its next earnings release. In that report, analysts expect Avid Bioservices to post earnings of $0.02 per share. This would mark year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $28 million, up 28.38% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.28 per share and revenue of $117.1 million. These totals would mark changes of +366.67% and +22.15%, respectively, from last year.

Any recent changes to analyst estimates for Avid Bioservices should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.66% higher. Avid Bioservices is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Avid Bioservices's current valuation metrics, including its Forward P/E ratio of 67.39. This represents a premium compared to its industry's average Forward P/E of 16.96.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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