Emergent Biosolutions (EBS) Moves 12.5% Higher: Will This Strength Last?
Emergent Biosolutions EBS shares ended the last trading session 12.5% higher at $14.92. 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 0.5% gain over the past four weeks.
Share price rose after management announced that the FDA advisory committee unanimously recommended approval of the company’s supplemental new drug application (sNDA) seeking to make opioid overdose reversal drug Narcan (naxolone) nasal spray available without a prescription throughout the U.S. The FDA generally follows the recommendation of its advisory committee. Investors likely cheered as they expect a positive FDA decision on the sNDA.
This biopharmaceutical company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -92.9%. Revenues are expected to be $307.73 million, down 57.5% 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 Emergent Biosolutions, the consensus EPS estimate for the quarter has been revised 1.1% 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 EBS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Emergent Biosolutions is part of the Zacks Medical - Biomedical and Genetics industry. Rapt Therapeutics RAPT, another stock in the same industry, closed the last trading session 2.7% higher at $28.64. RAPT has returned 4.3% in the past month.
For Rapt Therapeutics , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.67. This represents a change of -9.8% from what the company reported a year ago. Rapt Therapeutics currently has a Zacks Rank of #2 (Buy).
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