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Cumberland Pharmaceuticals (CPIX) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Cumberland Pharmaceuticals (CPIX - Free Report) closed at $5.67, marking a +1.61% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.6%.

Prior to today's trading, shares of the pharmaceutical company had gained 10.06% over the past month. This has outpaced the Medical sector's loss of 3.37% and the S&P 500's loss of 1.87% in that time.

Investors will be hoping for strength from CPIX as it approaches its next earnings release. The company is expected to report EPS of $0.11, up 320% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.65 million, up 49% from the prior-year quarter.

CPIX's full-year Zacks Consensus Estimates are calling for earnings of $0.40 per share and revenue of $47.36 million. These results would represent year-over-year changes of +1433.33% and +16.24%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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

In terms of valuation, CPIX is currently trading at a Forward P/E ratio of 13.95. Its industry sports an average Forward P/E of 16.58, so we one might conclude that CPIX is trading at a discount comparatively.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

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