Cumberland Pharmaceuticals (CPIX) Gains As Market Dips: What You Should Know

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Cumberland Pharmaceuticals (CPIX) closed the most recent trading day at $6.35, moving +0.79% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 1.51%.

Heading into today, shares of the pharmaceutical company had lost 1.56% over the past month, lagging the Medical sector's gain of 3.89% and the S&P 500's gain of 4.32% in that time.

Wall Street will be looking for positivity from CPIX as it approaches its next earnings report date. On that day, CPIX is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 600%. Our most recent consensus estimate is calling for quarterly revenue of $12.59 million, up 23.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $49.09 million. These totals would mark changes of +1333.33% and +20.49%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CPIX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CPIX is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, CPIX is holding a Forward P/E ratio of 17.03. This represents a discount compared to its industry's average Forward P/E of 18.11.

The Medical - Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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