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Virgin Galactic (SPCE) Stock Sinks As Market Gains: Here's Why

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Virgin Galactic (SPCE - Free Report) closed at $1.24 in the latest trading session, marking a -1.59% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.

Heading into today, shares of the company had lost 26.74% over the past month, lagging the Aerospace sector's gain of 1.79% and the S&P 500's gain of 0.48% in that time.

Investors will be eagerly watching for the performance of Virgin Galactic in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.26, showcasing a 54.39% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2 million, up 412.82% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$0.96 per share and a revenue of $8.31 million, demonstrating changes of +35.14% and +22.21%, respectively, from the preceding year.

Any recent changes to analyst estimates for Virgin Galactic should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Virgin Galactic currently has a Zacks Rank of #3 (Hold).

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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