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ProDex (PDEX) Surges 7.4%: Is This an Indication of Further Gains?

Zacks
03 Apr

Pro-Dex, Inc. (PDEX) shares soared 7.4% in the last trading session to close at $55.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 49.8% gain over the past four weeks.

The recent surge in Pro-Dex shares can be attributed to strong investor optimism ahead of the company’s upcoming third-quarter fiscal 2025 results. PDEX delivered a strong second-quarter results, highlighted by a 33% YoY increase in quarterly revenue and a 247% rise in operating income. The same momentum is likely to continue in the to-be-reported quarter as well. The Zacks Consensus Estimates for PDEX indicates an impressive 23.8% growth in revenues and 147.4% improvement in earnings for the third quarter fiscal 2025 results.

This company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +147.4%. Revenues are expected to be $17.7 million, up 23.9% 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 ProDex, 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 PDEX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

ProDex is a member of the Zacks Medical - Dental Supplies industry. One other stock in the same industry, West Pharmaceutical Services (WST), finished the last trading session 0.6% higher at $221.50. WST has returned -2.4% over the past month.

For West Pharmaceutical , the consensus EPS estimate for the upcoming report has changed -5% over the past month to $1.30. This represents a change of -16.7% from what the company reported a year ago. West Pharmaceutical currently has a Zacks Rank of #4 (Sell).

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

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