Ginkgo Bioworks (DNA) Surges 11.1%: Is This an Indication of Further Gains?

Ginkgo Bioworks Holdings, Inc. (DNA) shares ended the last trading session 11.1% higher at $7.84. 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 8.4% loss over the past four weeks.

Last month, the company reported financial results for the second quarter of 2026. Around the same time, Ginkgo won government contracts to build autonomous labs at various institutes/universities across the United States. The company believes it is well positioned to provide next-generation R&D infrastructure and services to U.S.-based biopharma companies.

This company is expected to post quarterly loss of $0.58 per share in its upcoming report, which represents a year-over-year change of +60%. Revenues are expected to be $20.5 million, down 47.2% 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 Ginkgo Bioworks, 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 DNA 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 >>>>

Ginkgo Bioworks is part of the Zacks Medical - Biomedical and Genetics industry. Arvinas, Inc. (ARVN), another stock in the same industry, closed the last trading session 1.8% higher at $8.31. ARVN has returned -15.7% in the past month.

For Arvinas, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.8. This represents a change of -66.7% from what the company reported a year ago. Arvinas 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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