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Strength Seen in Pacific Biosciences (PACB): Can Its 8.9% Jump Turn into More Strength?

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Pacific Biosciences of California (PACB - Free Report) shares ended the last trading session 8.9% higher at $11.72. 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 4.1% loss over the past four weeks.

Pacific Biosciences recorded a strong price increase after it announced PacBio Capital, a program that will offer customers the ability to lease PacBio sequencing systems (Revio, Onso and Sequel IIe) easily and cost-effectively.

This maker of genetic analysis technology is expected to post quarterly loss of $0.29 per share in its upcoming report, which represents a year-over-year change of +9.4%. Revenues are expected to be $48.12 million, up 48.9% 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 Pacific Biosciences, the consensus EPS estimate for the quarter has been revised 0.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PACB 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 >>>>

Pacific Biosciences is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Intuitive Surgical, Inc. (ISRG - Free Report) , finished the last trading session 0.4% higher at $302.70. ISRG has returned -1.7% over the past month.

For Intuitive Surgical, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.41. This represents a change of +18.5% from what the company reported a year ago. Intuitive Surgical, Inc. currently has a Zacks Rank of #1 (Strong Buy).

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