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Avid Bioservices (CDMO) Stock Sinks As Market Gains: What You Should Know

This story originally appeared on Zacks

Avid Bioservices (CDMO) closed at $20.24 in the latest trading session, marking a -0.3% move from the prior day. This change lagged the S&P 500’s 2.24% gain on the day. Elsewhere, the Dow gained 2.51%, while the tech-heavy Nasdaq lost 0.17%.

– Zacks

Heading into today, shares of the contract manufacturer had gained 22.07% over the past month, outpacing the Medical sector’s loss of 1% and the S&P 500’s loss of 2.58% in that time.

Wall Street will be looking for positivity from Avid Bioservices as it approaches its next earnings report date. The company is expected to report EPS of $0.05, up 400% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $28 million, up 28.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.28 per share and revenue of $117.1 million, which would represent changes of +366.67% and +22.15%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Avid Bioservices. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Avid Bioservices is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Avid Bioservices is currently trading at a Forward P/E ratio of 72.5. This valuation marks a premium compared to its industry’s average Forward P/E of 16.51.

The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Avid Bioservices, Inc. (CDMO): Free Stock Analysis Report
 
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