Back to top

Image: Bigstock

ProDex (PDEX) Moves 23.0% Higher: Will This Strength Last?

Read MoreHide Full Article

Pro-Dex, Inc. (PDEX - Free Report) shares rallied 23% in the last trading session to close at $57.78. 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 12.6% loss over the past four weeks.

The sharp upsurge in PDEX shares can be attributed to positive market sentiment surrounding its strong recent financial performance and sustained strength in its business model. The company has shown impressive growth, with past six months return of more than 200%. Investors seem to be optimistic about ProDex’s strong fundamentals and revenue growth, which have been consistent and also likely to reflect in the upcoming results as well.

This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +171.4%. Revenues are expected to be $13.8 million, up 9.6% 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 ProDex, 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 PDEX going forward to see if this recent jump can turn into more strength down the road.

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

ProDex is part of the Zacks Medical - Dental Supplies industry. Staar Surgical (STAA - Free Report) , another stock in the same industry, closed the last trading session 4.9% lower at $23.33. STAA has returned -3% in the past month.

For Staar Surgical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of -91.7% from what the company reported a year ago. Staar Surgical currently has a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


STAAR Surgical Company (STAA) - free report >>

Pro-Dex, Inc. (PDEX) - free report >>

Published in