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ProPhase Labs, Inc. (PRPH) Surges 8.5%: Is This an Indication of Further Gains?

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ProPhase Labs, Inc. (PRPH - Free Report) shares ended the last trading session 8.5% higher at $8.42. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.

The sudden soaring of the stock prices can be attributed to the positive momentum built around the performance of ProPhase's wholly-owned subsidiary companies. ProPhase Labs has five subsidiaries under its belt, conducting business in five distinct markets, genome sequencing, diagnostics, biopharmaceuticals, healthcare product development and supplements. 

This company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -113.2%. Revenues are expected to be $16.3 million, down 65.7% 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 ProPhase Labs, 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 PRPH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

ProPhase Labs, Inc. is part of the Zacks Medical - Drugs industry. FibroGen (FGEN - Free Report) , another stock in the same industry, closed the last trading session 2.4% lower at $16.11. FGEN has returned -13.2% in the past month.

FibroGen's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.76. Compared to the company's year-ago EPS, this represents a change of -11.8%. FibroGen currently boasts a Zacks Rank of #3 (Hold).

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