Like a turbulent airplane ride, Biomerica (NASDAQ:BMRA) suffered a seesaw over recent sessions. Initially, BMRA stock skyrocketed on Friday morning on news that Walmart (NYSE:WMT) will sell the underlying company’s breast self-exam device. However, a bearish market — largely stemming from heightened inflation expectations — dramatically hurt sentiment.
Early this morning, before the opening bell, Biomerica announced that its Aware Breast Self Exam will soon hit over 2,400 of Walmart’s retail stores. In July, Biomerica stated that Aware began selling via Walmart’s e-commerce site. However, the big-box retailer made the decision to sell the device in-store at approximately 50% of its retail locations.
Per the accompanying press release, “Biomerica has received and shipped an Initial stocking order from Walmart, and the product should be on store shelves within weeks. The product retails for $19.95.”
To note, the U.S. Food and Drug Administration (FDA) provided clearance of the Aware device. In addition, Walmart is not the only major retailer selling the self-exam. Late last month, Biomerica announced that Amazon (NASDAQ:AMZN) shoppers can purchase the product through the e-commerce marketplace. As well, Amazon will fulfill product shipments.
Naturally, the significance for BMRA stock is twofold. First, Aware provides women with convenient access to a critical testing device. Walmart’s massive brick-and-mortar footprint should help improve overall health outcomes. Second, Biomerica gained significant momentum recently, helping to underscore its relevance.
Inflation Sentiment Unfairly Hurts BMRA Stock
On paper, Friday seemingly stood poised to deliver a holistically positive experience for BMRA stock. Per Biomerica CEO Zack Irani, “Overcoming breast cancer is all about early detection. Our unique product provides a tool to assist women in potentially detecting breast abnormalities early. As one of the largest retailers in the world, Walmart provides unmatched visibility and distribution for this potentially life-saving product.”
Unfortunately, Wall Street had other ideas for BMRA stock. After gapping up around 27%, shares find themselves down almost 7%. The volatility was bad enough to send the security down nearly 3% in the trailing five days.
Inflation sentiment courtesy of the University of Michigan provided the culprit. Its consumer survey demonstrated that the public anticipated a rise in inflation. Primarily, the concern here is that the Federal Reserve watches such economic barometers closely. Since the Fed already committed to a hawkish monetary policy, it may be tempted to tighten more aggressively. After all, higher inflation sentiment reflects that the central bank previously did not go far enough.
Unfortunately, more monetary tightening will likely not augur well for BMRA stock. At heart, Biomerica remains a growth narrative, with revenue trends above sector average but profitability metrics well below average. That’s a shame, because Biomerica’s momentum was stunted over matters not related to the compelling underlying science.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.