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NeoGenomics (NEO) Surges 6.4%: Is This an Indication of Further Gains?

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NeoGenomics (NEO - Free Report) shares soared 6.4% in the last trading session to close at $9.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.7% gain over the past four weeks.

Earlier this month, the company’s liquid biopsy focused subsidiary, Inivata Limited announced new data in support of its RaDaR assay for the detection of minimal residual disease (MRD) and recurrence in patients with high-risk hormone receptor-positive (HR+), human epidermal growth factor receptor 2-negative (HER2-) breast cancer. The data highlighted the potential of the RaDaR assay to offer an early predictor of tumor recurrence. This might have been driving the share price rally.

This operator of cancer-focused testing laboratories is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -2000%. Revenues are expected to be $124.25 million, up 2.1% 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 NeoGenomics, the consensus EPS estimate for the quarter has been revised 5.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NEO 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 >>>>

NeoGenomics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, CytomX Therapeutics (CTMX - Free Report) , closed the last trading session 1.6% higher at $1.90. Over the past month, CTMX has returned 19.1%.

CytomX Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.37. Compared to the company's year-ago EPS, this represents a change of -23.3%. CytomX Therapeutics currently boasts a Zacks Rank of #3 (Hold).


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