GeneDx Holdings (WGS) Surges 13.2%: Is This an Indication of Further Gains?

GeneDx Holdings Corp. WGS shares soared 13.2% in the last trading session to close at $89.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.5% gain over the past four weeks.GeneDx Holdings scored a strong price increase driven by optimism surrounding a recently issued guidance by the Food and Drug Administration mentioning the use of artificial intelligence ("AI") for the development of drug and biological products. The news is encouraging for GeneDx Holdings, as it employs AI to conduct diagnostic testing connected to genomics. This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +133.9%. Revenues are expected to be $81.5 million, up 41.9% 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 GeneDx Holdings, 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 WGS 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 >>>>GeneDx Holdings is a member of the Zacks Medical Services industry. One other stock in the same industry, Alignment Healthcare ALHC, finished the last trading session 3.3% lower at $11.32. ALHC has returned 2.7% over the past month.Alignment Healthcare's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. Compared to the company's year-ago EPS, this represents a change of +28%. Alignment Healthcare currently boasts a Zacks Rank of #4 (Sell).5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 GeneDx Holdings Corp. (WGS): Free Stock Analysis Report Alignment Healthcare, Inc. (ALHC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks