Will It Continue to Soar?

Will It Continue to Soar?

Elanco Animal Health Incorporated ELAN shares ended the last trading session 11.7% higher at $11.84. 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 3.8% gain over the past four weeks.

Elanco Animal Health Incorporated recorded a strong price increase after the company and the US Environmental Protection Agency (EPA) announced that EPA, with the FDA’s support, had completed its comprehensive, multi-year review of the Seresto flea and tick collar. EPA confirmed continued registration of the collar, while comprehensive data confirmed the safety profile of Seresto.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -86.1%. Revenues are expected to be $1.04 billion, down 11.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength of a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Elanco Animal Health Incorporated, the consensus EPS estimate for the quarter has been revised 2.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on ELAN 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 >>>>

Elanco Animal Health Incorporated is part of the Zacks Medical – Outpatient and Home Healthcare industry. Aveanna Healthcare AVAH, another stock in the same industry, closed the last trading session 4.9% lower at $1.56. AVAH has returned 10.1% in the past month.

For Aveanna , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. This represents a change of -233.3% from what the company reported a year ago. Aveanna currently has a Zacks Rank of #3 (Hold).

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