NeoGenomics (NEO) Soars 7.2%: Is Further Upside Left in the Stock?

NeoGenomics (NEO) shares ended the last trading session 7.2% higher at $11.13. 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 16.6% gain over the past four weeks.

The company's shares are on strong uptrend, gaining 39.8% in the past three months. The surge in stock price yesterday was likely driven by positive investment sentiment.

This operator of cancer-focused testing laboratories is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $197.25 million, up 8.8% 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 NeoGenomics, 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 NEO 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 >>>>

NeoGenomics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY), closed the last trading session 2.3% lower at $54. Over the past month, BMY has returned -5.6%.

For Bristol Myers, the consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $1.61. This represents a change of +10.3% from what the company reported a year ago. Bristol Myers currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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