Analysts' Revenue Estimates For Chembio Diagnostics, Inc. (NASDAQ:CEMI) Are Surging Higher

Shareholders in Chembio Diagnostics, Inc. (NASDAQ:CEMI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 6.0% to US$3.01 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from Chembio Diagnostics' three analysts is for revenues of US$54m in 2021 which - if met - would reflect a huge 56% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$36m in 2021. It looks like there's been a clear increase in optimism around Chembio Diagnostics, given the chunky increase in revenue forecasts.

Check out our latest analysis for Chembio Diagnostics

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Chembio Diagnostics' growth to accelerate, with the forecast 144% annualised growth to the end of 2021 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Chembio Diagnostics is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Chembio Diagnostics this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Chembio Diagnostics.

Analysts are clearly in love with Chembio Diagnostics at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. For more information, you can click through to our platform to learn more about this and the 3 other flags we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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