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Cumberland Pharmaceuticals (CPIX) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Cumberland Pharmaceuticals (CPIX - Free Report) closed at $6.19, marking a -0.16% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.42%.

Coming into today, shares of the pharmaceutical company had lost 1.59% in the past month. In that same time, the Medical sector gained 4.2%, while the S&P 500 gained 2.2%.

CPIX will be looking to display strength as it nears its next earnings release. In that report, analysts expect CPIX to post earnings of $0.07 per share. This would mark year-over-year growth of 600%. Our most recent consensus estimate is calling for quarterly revenue of $12.59 million, up 23.92% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $49.09 million, which would represent changes of +1333.33% and +20.49%, respectively, from the prior year.

Any recent changes to analyst estimates for CPIX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CPIX is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, CPIX is currently trading at a Forward P/E ratio of 16.76. This valuation marks a discount compared to its industry's average Forward P/E of 18.11.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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