NeoGenomics (NEO) moves 6.3% higher: Will this strength last?

NeoGenomics (NEO) shares soared 6.3% in the last trading session to close at $9.97. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.4% gain over the past four weeks.

This rise in share price is attributable to positive investor expectations around the company’s diagnostics business. At the upcoming ESMO 2025 medical conference, NeoGenomics is set to showcase new clinical data and ongoing interventional studies for its RaDaR ST molecular residual disease (MRD) assay. This personalized ctDNA test is designed to enhance precision oncology and accelerate drug development. Such presentations highlight the company’s growing role as a key partner for biopharma companies.

This operator of cancer-focused testing laboratories is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -60%. Revenues are expected to be $183.63 million, up 9.4% 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 NeoGenomics, the consensus EPS estimate for the quarter has been revised 5.7% 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 NEO going forward to see if this recent jump can turn into more strength down the road.

NeoGenomics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Bristol Myers Squibb (BMY), finished the last trading session 0.4% lower at $43.61. BMY has returned -5.5% over the past month.

For Bristol Myers, the consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $1.56. This represents a change of -13.3% from what the company reported a year ago. Bristol Myers currently has a Zacks Rank of #3 (Hold).

Free report: Profiting from the 2nd wave of AI explosion

The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.

Investors who bought shares like Nvidia at the right time have had a shot at huge gains.

But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.

---

Want the latest recommendations from Zacks Investment Research? Download 7 Best Stocks for the Next 30 Days. Click to get this free report