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Bausch (BHC) Surges 11.7%: Is This an Indication of Further Gains?

Zacks Equity Research
·2-min read

Bausch Health (BHC) shares rallied 11.7% in the last trading session to close at $8.02. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.2% gain over the past four weeks.

Bausch stock witnessed a rally after a Bloomberg report said that the company is working with Jefferies Financial Group to explore refinancing some of its debt. The debt refinancing is expected to help the company in the impending spinoff of its eye-care company, Bausch + Lomb.

 

This drugmaker is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +1.9%. Revenues are expected to be $2.43 billion, up 8.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Bausch, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BHC 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 >>>>

Bausch is part of the Zacks Medical - Generic Drugs industry. Taysha Gene Therapies, Inc. (TSHA), another stock in the same industry, closed the last trading session 1.4% lower at $2.15. TSHA has returned -4.8% in the past month.

For Taysha Gene Therapies , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. This represents a change of +38.5% from what the company reported a year ago. Taysha Gene Therapies currently has a Zacks Rank of #3 (Hold).

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Bausch Health Cos Inc. (BHC) : Free Stock Analysis Report

Taysha Gene Therapies, Inc. (TSHA) : Free Stock Analysis Report

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