LifeMD (LFMD) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock conti
LifeMD, Inc. LFMD shares ended the last trading session 23.7% higher at $5.06. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.9% gain over the past four weeks.
LifeMD scored a strong price increase on investors’ optimism surrounding the company’s launch of Foundayo to eligible patients through its weight management program. The addition of Foundayo expands LifeMD’s offerings of branded GLP-1 therapies from both Lilly and Novo Nordisk.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -1500%. Revenues are expected to be $48.25 million, down 26.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For LifeMD, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LFMD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
LifeMD is a member of the Zacks Medical Services industry. One other stock in the same industry, Biodesix, Inc. BDSX, finished the last trading session 0.2% higher at $13.17. BDSX has returned -11.7% over the past month.
For Biodesix, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.26. This represents a change of +21.3% from what the company reported a year ago. Biodesix currently has a Zacks Rank of #2 (Buy).
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