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Yes, the market has certainly seen its share of volatility recently. It’s led to some treacherous slides in equity prices. It seems that the high beta names are really getting slapped down. In most cases, the mega caps have stood in relatively well. Tuesday’s move to the 200-day on the S&P 500 brought out the bargain shoppers too. Many stocks managed to push into positive territory.
On a bounce from those lows, resist the urge to buy everything that moves. Rather, look for stocks with strong earnings trends which have retreated to support. One way to find these is by leaning on the time-tested ability of the Zacks Rank. Stocks in the good graces of our Zacks Rank have the best earnings trends recently, which could set investors up for success when the market turns back up.
Once such stock is today’s Bull of the Day, Pacira BioSciences (PCRX). Pacira BioSciences, Inc. engages in the development, manufacture, marketing, distribution, and sale of non-opioid pain management and regenerative health solutions to healthcare practitioners in the United States.
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Pacira is a Zacks Rank #1 (Strong Buy) in the Medical – Biomedical and Genetics industry which ranks in the Top 29% of our Zacks Industry Rank. The reason for the favorable rank stems from analysts’ reaction to its last earnings report. For the third consecutive quarter, the company’s earnings beat expectations. The 5-cent beat was enough to see two analysts raise their earnings estimates for the current year and next year. The bullish sentiment pushed up our Zacks Consensus Estimates for the current year from $2.67 to $3.59 and next year’s number up from $3.01 to $4.30.
That sets current year earnings growth at 11.84%, with next year’s number accelerating to 19.79% growth. That puts Pacira at a PE of just 6.39x earnings. That’s on revenue growth of 7.2% this year and 9.95% next year.
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Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).