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CoDiagnostics, Inc. (CODX) Surges 5.8%: Is This an Indication of Further Gains?

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CoDiagnostics, Inc. (CODX - Free Report) shares soared 5.8% in the last trading session to close at $6.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.1% gain over the past four weeks.

Optimism over the company's recent announcement that it has made the first shipment of its testing reagents for monkeypox virus, is driving the share price higher. With Monkeypox being declared as global health emergency by WHO following its multi-country outbreak, the latest development of Co-Diagnostics can be considered as highly strategic and well timed.

This company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -54.6%. Revenues are expected to be $20.5 million, down 25.1% 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 CoDiagnostics, Inc., 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 CODX 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 >>>>

CoDiagnostics, Inc. belongs to the Zacks Medical Services industry. Another stock from the same industry, The Beauty Health Company (SKIN - Free Report) , closed the last trading session 1.5% lower at $12.71. Over the past month, SKIN has returned -11.7%.

The Beauty Health Company's consensus EPS estimate for the upcoming report has changed -7.1% over the past month to $0.01. Compared to the company's year-ago EPS, this represents a change of -87.5%. The Beauty Health Company currently boasts a Zacks Rank of #5 (Strong Sell).

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