Emergent Biosolutions (EBS) Stock Sinks As Market Gains: What You Should Know

Emergent Biosolutions (EBS) closed the most recent trading day at $90.77, moving -0.55% from the previous trading session. This change lagged the S&P 500's 1.2% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 1.64%.

Coming into today, shares of the biopharmaceutical company had lost 11.67% in the past month. In that same time, the Medical sector lost 4.59%, while the S&P 500 lost 2.23%.

Investors will be hoping for strength from EBS as it approaches its next earnings release, which is expected to be November 5, 2020. The company is expected to report EPS of $2.05, up 69.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $451.85 million, up 44.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.61 per share and revenue of $1.53 billion. These totals would mark changes of +127.15% and +38.28%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for EBS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% higher. EBS is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, EBS is holding a Forward P/E ratio of 13.8. Its industry sports an average Forward P/E of 23.63, so we one might conclude that EBS is trading at a discount comparatively.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EBS in the coming trading sessions, be sure to utilize Zacks.com.

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