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QuidelOrtho (QDEL) Stock Jumps 3.9%: Will It Continue to Soar?

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QuidelOrtho (QDEL - Free Report) shares rallied 3.9% in the last trading session to close at $101.06. 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 1.1% loss over the past four weeks.

QuidelOrtho recorded a strong price increase following the recent completion of the transaction combining Quidel Corporation and Ortho Clinical Diagnostics Holdings plc, thereby raising optimism regarding the solid prospects of the combined company. QuidelOrtho’s announcement of a multitiered collaboration with Global Lyme Alliance to amplify public awareness about Lyme Disease, a health condition afflicting nearly half a million Americans every year, also looks encouraging.

This medical diagnostics company is expected to post quarterly earnings of $3.21 per share in its upcoming report, which represents a year-over-year change of +328%. Revenues are expected to be $384.1 million, up 117.5% 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 QuidelOrtho, 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

QuidelOrtho is a member of the Zacks Medical - Products industry. One other stock in the same industry, Cardiovascular Systems , finished the last trading session 1% higher at $13.74. CSII has returned -7.7% over the past month.

For Cardiovascular Systems, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to -$0.22. This represents a change of -57.1% from what the company reported a year ago. Cardiovascular Systems currently has a Zacks Rank of #3 (Hold).


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