BeiGene (BGNE) Moves 5.3% Higher: Will This Strength Last?
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BeiGene, Ltd. (BGNE) shares soared 5.3% in the last trading session to close at $246.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% gain over the past four weeks.
The sudden rise in the stock price can be attributed to the positive investor mindset regarding the performance of the company’s marketed portfolio of drugs. Beigene currently has three approved medicines – Brukinsa (various blood cancers), Tevimbra (various solid tumor and blood cancers) and Partruvix (ovarian cancer). The company also has a deep pipeline of investigational candidates, which are being evaluated for several solid tumor and hematology indications.
This company is expected to post quarterly loss of $0.94 per share in its upcoming report, which represents a year-over-year change of -146.8%. Revenues are expected to be $976.82 million, up 25% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For BeiGene, 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 BGNE 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 >>>>
BeiGene is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Foghorn Therapeutics Inc. (FHTX), finished the last trading session 4.7% higher at $7.83. FHTX has returned -7.4% over the past month.
For Foghorn Therapeutics , the consensus EPS estimate for the upcoming report has changed +2.5% over the past month to -$0.42. This represents a change of -23.5% from what the company reported a year ago. Foghorn Therapeutics currently has a Zacks Rank of #3 (Hold).
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