Send me real-time posts from this site at my email
Zacks

Strength Seen in Codexis (CDXS): Can Its 12.6% Jump Turn into More Strength?

Codexis CDXS shares ended the last trading session 12.6% higher at $22.12. 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 0.1% gain over the past four weeks.

The company's share price gained following Codexis raised its revenue guidance for 2021 as well its guidance for product gross margin. The announcement came after receipt of a significant new order for a proprietary enzyme product, majority of which was not included in previous guidance.

This producer of custom industrial enzymes is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of -54.6%. Revenues are expected to be $18.03 million, up 20.5% 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 Codexis, 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 CDXS 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 >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Codexis, Inc. (CDXS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue