CareDx (CDNA) Surges 7.0%: Is This an Indication of Further Gains?

CareDx CDNA shares soared 7% in the last trading session to close at $12.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 37.4% loss over the past four weeks.CareDx recorded a strong price rise on investors’ optimism following the announcement of a proposed draft Local Coverage Determination ("LCD") by Medicare Administrative Contractors related to molecular testing for solid organ allograft rejection. The draft LCD maintains current coverage for non-invasive surveillance testing in kidney, heart, and lung transplant patients without requiring protocol biopsies. Per the Management, the draft LCD confirms support for their surveillance tests and shows that these tests help improve health for transplant patients.This molecular diagnostics company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -52%. Revenues are expected to be $90.72 million, down 1.7% 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 CareDx, 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 CDNA 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 >>>>CareDx belongs to the Zacks Medical Services industry. Another stock from the same industry, Sonida Senior Living SNDA, closed the last trading session 0.5% higher at $24.83. Over the past month, SNDA has returned 3%.For Sonida Senior Living, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.78. This represents a change of +9.3% from what the company reported a year ago. Sonida Senior Living currently has a Zacks Rank of #3 (Hold).Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CareDx, Inc. (CDNA): Free Stock Analysis Report Sonida Senior Living, Inc. (SNDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks