Arcus Biosciences, Inc. (RCUS) Stock Jumps 15.5%: Will It Continue to Soar?
Arcus Biosciences, Inc. (RCUS) shares ended the last trading session 15.5% higher at $27.02. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.5% loss over the past four weeks.
Earlier this week, the company announced data from the first interim analysis of the three-arm randomized phase II ARC-7 study. In the study, both arms with domvanalimab-based combinations demonstrated encouraging clinical activity when given as an initial treatment to people with metastatic, non-small cell lung cancer. Moreover, the zimberelimab monotherapy arm showed activity similar to that of marketed anti-PD-1 antibodies in this setting. This might have been driving the rally.
This company is expected to post quarterly loss of $0.81 per share in its upcoming report, which represents a year-over-year change of +12.9%. Revenues are expected to be $15.5 million, up 785.7% 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 Arcus Biosciences, Inc., 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 RCUS 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 >>>>
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