Arvinas, Inc. (ARVN) Moves 17.5% Higher: Will This Strength Last?
Arvinas, Inc. (ARVN) shares ended the last trading session 17.5% higher at $28.78. 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 5.7% gain over the past four weeks.
The sudden surge in Arvinas' stock price can be attributed to the momentum developed around the company's oncology pipeline. Last week, the company reported positive initial data from its phase I/II dose escalation and expansion study of ARV-766 in male patients with metastatic castration-resistant prostrate cancer (mCRPC). Per the data readout, signs of efficacy in late-line mCRPC patients were observed upon treatment with AR-766, along with a favorable tolerabilty profile. Arvinas is also currently developing another candidate, ARV-110, in a phase I/II study to treat mCPRC, with a reportedly different profile as compared to ARV-766. Furthermore, the company plans to initiate a phase III study on ARV-471, in partnership with Pfizer, in the treatment of ER+/HER2- breast cancer.
This company is expected to post quarterly loss of $1.67 per share in its upcoming report, which represents a year-over-year change of -26.5%. Revenues are expected to be $32.45 million, up 3.7% 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 Arvinas, Inc., the consensus EPS estimate for the quarter has been revised 0.8% 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 ARVN 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 >>>>
Arvinas, Inc. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Gilead Sciences (GILD), finished the last trading session 0.3% lower at $77.86. GILD has returned -0.1% over the past month.
For Gilead , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.66. This represents a change of +5.1% from what the company reported a year ago. Gilead currently has a Zacks Rank of #3 (Hold).
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