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Avid Bioservices (CDMO) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Avid Bioservices (CDMO - Free Report) closed at $21.25, marking a -1.16% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the contract manufacturer had gained 11.05% over the past month. This has outpaced the Medical sector's loss of 2.18% and the S&P 500's loss of 4.02% 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 $0.05 per share. This would mark year-over-year growth of 400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28 million, up 28.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.28 per share and revenue of $117.1 million, which would represent changes of +366.67% and +22.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Avid Bioservices. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Avid Bioservices is currently a Zacks Rank #3 (Hold).

Digging into valuation, Avid Bioservices currently has a Forward P/E ratio of 76.79. For comparison, its industry has an average Forward P/E of 17.11, which means Avid Bioservices is trading at a premium to the group.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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