Bavarian Nordic (BVNRY) Surges 8.1%: Is This an Indication of Further Gains?

Bavarian Nordic (BVNRY) shares soared 8.1% in the last trading session to close at $17.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.5% gain over the past four weeks.

Shares rose after the company announced that it has entered into an agreement with a U.S- based contract manufacturer, Aseptic Manufacturing, to manufacture the former’s monkey pox vaccine Jynneos. Besides allowing faster deliveries to the U.S. Biomedical Advanced Research and Development Authority’s (BARDA) demand for 5.5 million vaccine doses, it will free up Bavarian’s capacity to meet the vaccine demand for other countries.

This company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of -15.4%. Revenues are expected to be $74.87 million, up 24.9% from the year-ago quarter.

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

For Bavarian Nordic, 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 BVNRY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Bavarian Nordic is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Sangoma Technologies Corporation (SANG), finished the last trading session 0.9% higher at $9.69. SANG has returned 19% over the past month.

For Sangoma Technologies Corporation , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. This represents a change of +866.7% from what the company reported a year ago. Sangoma Technologies Corporation currently has a Zacks Rank of #3 (Hold).

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