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Emergent Biosolutions Inc. (EBS) Soars to 52-Week High, Time to Cash Out?
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Shares of Emergent Biosolutions (EBS - Free Report) have been strong performers lately, with the stock up 39.7% over the past month. The stock hit a new 52-week high of $13.41 in the previous session. Emergent Biosolutions has gained 34.3% since the start of the year compared to the 4.3% move for the Zacks Medical sector and the 12% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2025, Emergent Biosolutions reported EPS of $1.06 versus consensus estimate of -$0.12 while it beat the consensus revenue estimate by 20.88%.
Valuation Metrics
While Emergent Biosolutions has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Emergent Biosolutions has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.3X. On a trailing cash flow basis, the stock currently trades at 6.7X versus its peer group's average of 16.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Emergent Biosolutions an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Emergent Biosolutions currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Emergent Biosolutions meets the list of requirements. Thus, it seems as though Emergent Biosolutions shares could have potential in the weeks and months to come.
How Does EBS Stack Up to the Competition?
Shares of EBS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Vericel Corporation (VCEL - Free Report) . VCEL has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Vericel Corporation beat our consensus estimate by 75.00%, and for the current fiscal year, VCEL is expected to post earnings of $0.20 per share on revenue of $275.07 million.
Shares of Vericel Corporation have gained 9.6% over the past month, and currently trade at a forward P/E of 175.58X and a P/CF of 110.5X.
The Medical - Biomedical and Genetics industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EBS and VCEL, even beyond their own solid fundamental situation.
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Emergent Biosolutions Inc. (EBS) Soars to 52-Week High, Time to Cash Out?
Shares of Emergent Biosolutions (EBS - Free Report) have been strong performers lately, with the stock up 39.7% over the past month. The stock hit a new 52-week high of $13.41 in the previous session. Emergent Biosolutions has gained 34.3% since the start of the year compared to the 4.3% move for the Zacks Medical sector and the 12% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2025, Emergent Biosolutions reported EPS of $1.06 versus consensus estimate of -$0.12 while it beat the consensus revenue estimate by 20.88%.
Valuation Metrics
While Emergent Biosolutions has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Emergent Biosolutions has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.3X. On a trailing cash flow basis, the stock currently trades at 6.7X versus its peer group's average of 16.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Emergent Biosolutions an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Emergent Biosolutions currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Emergent Biosolutions meets the list of requirements. Thus, it seems as though Emergent Biosolutions shares could have potential in the weeks and months to come.
How Does EBS Stack Up to the Competition?
Shares of EBS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Vericel Corporation (VCEL - Free Report) . VCEL has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Vericel Corporation beat our consensus estimate by 75.00%, and for the current fiscal year, VCEL is expected to post earnings of $0.20 per share on revenue of $275.07 million.
Shares of Vericel Corporation have gained 9.6% over the past month, and currently trade at a forward P/E of 175.58X and a P/CF of 110.5X.
The Medical - Biomedical and Genetics industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EBS and VCEL, even beyond their own solid fundamental situation.