most sought stocks is Moderna (MRNA). Thus, consider some of the factors that may affect the stock's performance soon. The Zacks S&P 500 composite returned -0.9% last month, while this biotechnology company's shares returned -0.4%. Moderna is in the Zacks Medical - Biomedical and Genetics industry, which has lost 7.5%. Future stock direction is the crucial question.
Despite media announcements or speculations regarding a company's business prospects 'trending' and causing an immediate price movement, fundamental facts always drive buy-and-hold decisions. Earnings Estimate Changes We at Zacks monitor a company's earnings prediction shift above anything else. We believe the present value of its future profits stream determines a stock's fair value.
We base our analysis on how sell-side analysts covering the firm are changing their profit predictions to reflect business movements. Fair value for a company's shares rises with profit projections. When a stock's fair value is higher than its market price, investors buy it, raising its price. Because of this, empirical studies show a substantial link between earnings estimate revisions and short-term stock price changes.
Moderna is predicted to lose $3.36 per share this quarter, down 1,868.4% year-over-year. The Zacks Consensus Estimate has dropped 7.4% in 30 days. The current fiscal year consensus earnings forecast of -$7.51 is up 39.1% from last year. This estimate has dropped 0.4% in 30 days.
Moderna's consensus earnings forecast of -$5.47 for the upcoming fiscal year is up 27.1% from last year. In the past month, the estimate has dropped 0.7%. Earnings growth is the best sign of a company's financial health, but it fails without revenue growth. After all, a corporation can't sustainably boost earnings without expanding revenues. Knowing a company's revenue growth potential is crucial.
The current quarter consensus sales forecast of $238.56 million for Moderna is -87.2% year-over-year. Current and next fiscal year forecasts are $4.16 billion and $5.15 billion, respectively, indicating -39.3% and +23.8% changes.
Last Results and Surprises In the past quarter, Moderna recorded $2.81 billion in revenues, down 44.7% year-over-year. For the same time, EPS was $0.55 versus $3.61 last year. Revenues were +10.32% more than the Zacks Consensus Estimate of $2.55 billion. Positive 170.51% EPS surprise.
The company exceeded consensus EPS projections in all four quarters. Throughout this period, the company exceeded consensus revenue projections.
Valuation No investing decision is efficient without stock valuation. To anticipate a stock's future price, you must analyze if its present price reflects the business's fundamental value and growth potential. Comparing the current value of a company's valuation multiples, such as its P/E, P/S, and P/CF, to its historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, while comparing it to its peers tells how reasonable its stock price is.
which uses both traditional and unconventional valuation metrics, divides stocks into five groups from A to F (A is better than B, B is better than C, etc.) to help determine whether a stock is overvalued, rightly valued, or temporarily undervalued. This grade of F indicates that Moderna trades above its peers. Click here to examine some of the valuation metrics that determined this grade.
Conclusion This and other Zacks.com information may help you decide whether to follow Moderna's market buzz. However, its Zacks Rank #3 suggests it may perform similarly to the market in the short run.
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