Why OraSure Technologies' Shares Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of medical diagnostic company OraSure Technologies jumped 11% today after getting two glowing reports from analysts.
So what: Nicholas Jansen at Raymond James upgraded the stock to outperform and set a price target of $8 per share because he thinks sales of hepatitis C and HIV tests will pick up as health insurance coverage expands. Janney Capital Markets analyst Spencer Nam maintained a buy rating and a $10 price target on hope that sales will pick up as early as the fourth quarter.
Now what: Stocks will often pop on upgrades like this and then drift lower as the early euphoria wears off. Keep in mind that even analysts are expecting OraSure to report a loss both this year and next, so there's a lot of progress to be made. Instead of buying on an analyst upgrade, I'd look at what the company reports and says about the future after the third quarter because fundamental progress is what will drive the stock long-term. If sales begin to pick up that will tell me a lot more than an analyst rating.
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The article Why OraSure Technologies' Shares Jumped Today originally appeared on Fool.com.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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