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Strength Seen in MiMedx (MDXG): Can Its 8.0% Jump Turn into More Strength?

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MiMedx (MDXG - Free Report) shares soared 8% in the last trading session to close at $7. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% gain over the past four weeks.

The sudden rise in price can be attributed to growing investors’ optimism related to the company’s efforts to develop and provide a leading portfolio of products for applications in the wound care, burn and surgical sectors of healthcare.

This developer of biomaterials made from sterilized human amniotic membrane is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $89.28 million, up 2.4% 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 MiMedx, 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 MDXG 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 >>>>

MiMedx is part of the Zacks Medical - Biomedical and Genetics industry. PTC Therapeutics (PTCT - Free Report) , another stock in the same industry, closed the last trading session 0.7% lower at $47.65. PTCT has returned -7.2% in the past month.

For PTC Therapeutics, the consensus EPS estimate for the upcoming report has changed -0.4% over the past month to -$1.07. This represents a change of +7.8% from what the company reported a year ago. PTC Therapeutics currently has a Zacks Rank of #3 (Hold).


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