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Recursion Pharmaceuticals (RXRX) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest close session, Recursion Pharmaceuticals (RXRX - Free Report) was down 1.68% at $6.43. This change lagged the S&P 500's 0.78% gain on the day. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.61%.

Shares of the biotechnology company have appreciated by 25.29% over the course of the past month, outperforming the Medical sector's loss of 0.02%, and the S&P 500's gain of 5.88%.

Analysts and investors alike will be keeping a close eye on the performance of Recursion Pharmaceuticals in its upcoming earnings disclosure. On that day, Recursion Pharmaceuticals is projected to report earnings of -$0.35 per share, which would represent year-over-year growth of 12.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.38 million, indicating a 0.3% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$1.35 per share and revenue of $68.39 million, indicating changes of +20.12% and +16.23%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Recursion Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.75% fall in the Zacks Consensus EPS estimate. Recursion Pharmaceuticals is currently a Zacks Rank #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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