Incyte (INCY) shares soared 5.5% in the last trading session to close at $102.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.4% loss over the past four weeks.
The stock price gain has likely been driven by growing investor confidence in the sustained commercial momentum of Incyte’s diversified portfolio of marketed therapies across hematology, dermatology, and oncology indications, reinforcing expectations for durable revenue growth.
This specialty drugmaker is expected to post quarterly earnings of $1.96 per share in its upcoming report, which represents a year-over-year change of +37.1%. Revenues are expected to be $1.35 billion, up 14.4% 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 Incyte, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on INCY 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 >>>>
Incyte is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Nurix Therapeutics, Inc. (NRIX), finished the last trading session 2.8% higher at $18.52. NRIX has returned 17.5% over the past month.
Nurix Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.86. Compared to the company's year-ago EPS, this represents a change of -14.7%. Nurix Therapeutics currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
