SOPHiA GENETICS SA (SOPH) Surges 13.0%: Is This an Indication of Further Gains?

·2 min read

SOPHiA GENETICS SA (SOPH) shares rallied 13% in the last trading session to close at $5.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 81.3% gain over the past four weeks.

SOPHiA Genetics scored a strong price increase driven by the optimism surrounding the company’s latest partnership deal with Agilent to offer a comprehensive solution for cancer analysis. The partnership brings together these two companies’ fortes in analytics and next generation sequencing assay development to simplify novel approaches to cancer research. Market is also upbeat about the company’s full-year 2023 outlook expecting reported revenue growth to be at or above 30% compared to prior year.

This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +30%. Revenues are expected to be $13.37 million, up 23.1% 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 SOPHiA GENETICS SA, the consensus EPS estimate for the quarter has been revised 9.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SOPH 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 >>>>

SOPHiA GENETICS SA is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, iRhythm Technologies (IRTC), finished the last trading session 4% higher at $114.71. IRTC has returned -0.1% over the past month.

iRhythm Technologies' consensus EPS estimate for the upcoming report has changed -7% over the past month to -$0.80. Compared to the company's year-ago EPS, this represents no change. iRhythm Technologies currently boasts a Zacks Rank of #3 (Hold).

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