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Strength Seen in SurModics (SRDX): Can Its 16.1% Jump Turn into More Strength?

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SurModics (SRDX - Free Report) shares rallied 16.1% in the last trading session to close at $29.12. 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 38.2% gain over the past four weeks.

The FDA approval for Surmodics' SurVeil drug-coated balloon for treating percutaneous transluminal angioplasty in patients with peripheral artery disease led the rally in the stock.

This drug delivery technology company is expected to post quarterly loss of $0.47 per share in its upcoming report, which represents a year-over-year change of -38.2%. Revenues are expected to be $26.85 million, up 8.1% 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 SurModics, 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 SRDX 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 >>>>

SurModics is a member of the Zacks Medical - Products industry. One other stock in the same industry, OrganiGram (OGI - Free Report) , finished the last trading session 6.6% lower at $0.41. OGI has returned -18.5% over the past month.

OrganiGram's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company's year-ago EPS, this represents a change of +66.7%. OrganiGram currently boasts a Zacks Rank of #4 (Sell).

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