TrovaGene Inc. (TROV) is set to report third-quarter 2014 results on Nov 6. Last quarter, the company had reported a loss of 18 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents.
Let’s see how things are shaping up prior to this announcement.
Factors Likely to Influence This Quarter
TrovaGene’s innovative product pipeline and ongoing collaborations with top cancer centres and integrated healthcare networks are expected to drive top-line growth. However, higher investments on research & development will negatively impact profitability in the near term.
Earnings Whispers?
Our proven model does not conclusively show that TrovaGene is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: TrovaGene has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 20 cents.
Zacks Rank: TrovaGene has a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
On the other hand, we caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Merrimack Pharmaceuticals (MACK), with an earnings ESP of +437.50% and a Zacks Rank #1 (Strong Buy).
Henry Schein (HSIC), with an earnings ESP of +1.53% and a Zacks Rank #2 (Buy).
PTC Therapeutics (PTCT), with an earnings ESP of +4.40% and a Zacks Rank #2.
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
Be the first to comment