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AVEO Pharmaceuticals (AVEO) shares ended the last trading session 89.1% higher at $15.28. 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 9.5% loss over the past four weeks.
The stock's massive share price increase was led by FDA approval of its drug Fotivda (tivozanib) for the treatment of relapsed/refractory advanced renal cell carcinoma (RCC) in patients who have received two or more prior systemic therapies. The drug, which is already marketed in Europe, is expected to launched in the United States by end of this month. This should drive sales of AVEO Oncology higher in 2021.
This cancer drug company is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $3.03 million, up 299.2% 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 AVEO, the consensus EPS estimate for the quarter has been revised 14.5% 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 AVEO 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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