Azenta AZTA shares rose 7.2% to close at $49.65 in the last trading session, with impressive trading volume indicating strong investor interest. This jump contributes to an overall gain of 13.2% for the stock over the past month.
Investor Optimism Boosted by S&P 600 News
The significant increase in Azenta’s stock price can be attributed to growing investor optimism after the company joined the S&P SmallCap 600, replacing Envestnet Inc. effective November 25, according to a press release from S&P Dow Jones. Furthermore, positive sentiment surrounds Azenta’s fourth-quarter fiscal 2024 results, where the company experienced a surprising earnings increase of 63.64%.
Strong Earnings Expectations Ahead
As for future performance, Azenta is projected to report earnings of $0.05 per share in the coming quarter, indicating a remarkable year-over-year increase of 150%. Revenue figures are expected to reach $146.24 million, which marks a 5.2% decline from the previous year.
Stability in Earnings Estimates
While earnings and revenue growth can indicate stock potential, research shows that changes in earnings estimates are closely linked to stock price movements. For Azenta, the consensus EPS estimate has remained stable over the past 30 days. Typically, a stock may not continue to rise without corresponding changes in earnings estimates. Hence, monitoring Azenta’s performance will be crucial in determining the sustainability of this recent increase.
Current Stock Rating and Industry Comparison
Currently, Azenta holds a Zacks Rank of #3 (Hold). A similar player in the Zacks Medical Info Systems industry, Inspire Medical Systems INSP, reported a 2% drop closing at $186.97 in the last trading session, although it has achieved an 8.3% gain over the past month.
For Inspire, the consensus EPS estimate also saw a slight increase of 0.5% over the past month, now standing at $0.72, which reflects a growth of 46.9% compared to last year. Inspire has a stronger Zacks Rank of #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
