Gilead Sciences (GILD) shares rallied 3.3% in the last trading session to close at $127.88. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.1% loss over the past four weeks.
Gilead Sciences’ stock price gain can likely be attributed to the investor optimism around its breast cancer drug Trodelvy (sacituzumab govitecan-hziy). Last week, the FDA approved an expanded use of Trodelvy, a first-in-class Trop-2-directed antibody-drug conjugate (ADC) for the first-line treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC). Trodelvy is now approved in first-line mTNBC, either as a single agent for patients who are not candidates for PD-(L)1 inhibitor-based therapy or in combination with Merck’s Keytruda (pembrolizumab) or Keytruda Qlex (subcutaneous injection of Keytruda) for patients whose tumors express PD-L1 (CPS ≥10) as determined by an FDA-authorized test. The latest FDA approval comes shortly after the European Commission expanded Trodelvy’s label for the same indication. The EU approval makes Trodelvy the first ADC to be approved in first-line metastatic TNBC in the European Union and the first new treatment option in 20 Years in Europe for these patients.
This HIV and hepatitis C drugmaker is expected to post quarterly loss of $7.20 per share in its upcoming report, which represents a year-over-year change of -458.2%. Revenues are expected to be $7.38 billion, up 4.2% 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 Gilead, the consensus EPS estimate for the quarter has been revised 13.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GILD 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 >>>>
Gilead belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Nuvation Bio Inc. (NUVB), closed the last trading session 2.8% lower at $5.65. Over the past month, NUVB has returned 22.3%.
Nuvation Bio's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. Compared to the company's year-ago EPS, this represents a change of +11.8%. Nuvation Bio currently boasts a Zacks Rank of #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).
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