Time Plus News

Breaking News, Latest News, World News, Headlines and Videos

Supernus (SUPN) Moves 5.7% Higher: Will This Strength Last?

This story originally appeared on Zacks

Supernus Pharmaceuticals SUPN shares soared 5.7% in the last trading session to close at $32.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 6.5% gain over the past four weeks.

– Zacks

The rise in share prices is most likely attributable to positive investor expectations for a better-than-expected earnings results. The company is expected to report its fourth-quarter results soon.

This drugmaker is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -63.2%. Revenues are expected to be $148.13 million, up 3.2% 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 Supernus, the consensus EPS estimate for the quarter has been revised 6.9% 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 SUPN 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 >>>>

Supernus is part of the Zacks Medical – Generic Drugs industry. Homology Medicines FIXX, another stock in the same industry, closed the last trading session 0.3% lower at $3.86. FIXX has returned 10.6% in the past month.

Homology Medicines’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.58. Compared to the company’s year-ago EPS, this represents a change of +6.5%. Homology Medicines currently boasts a Zacks Rank of #2 (Buy).

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Supernus Pharmaceuticals, Inc. (SUPN): Free Stock Analysis Report
 
Homology Medicines, Inc. (FIXX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Source link