Jazz (JAZZ) Soars 5.3%: Is Further Upside Left in the Stock?
Jazz Pharmaceuticals JAZZ shares soared 5.3% in the last trading session to close at $136. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.5% loss over the past four weeks.
The rise in share price is attributable to positive investor expectations for the stock, especially pertaining to its portfolio of marketed drugs. Last month, Jazz’s chemotherapy drug Rylaze was approved in the European Union to treat patients with acute lymphoblastic leukemia and lymphoblastic lymphoma, who have developed hypersensitivity to E. coli-derived asparaginase. The drug will be marketed in Europe under the trade name Enrylaze.
This drugmaker is expected to post quarterly earnings of $4.85 per share in its upcoming report, which represents a year-over-year change of -6.2%. Revenues are expected to be $969.01 million, up 3% 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 Jazz, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on JAZZ 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 >>>>
Jazz is part of the Zacks Medical - Drugs industry. Xencor XNCR, another stock in the same industry, closed the last trading session 0.5% higher at $18.95. XNCR has returned -8.9% in the past month.
Xencor's consensus EPS estimate for the upcoming report has changed +3% over the past month to -$0.77. Compared to the company's year-ago EPS, this represents a change of -40%. Xencor currently boasts a Zacks Rank of #3 (Hold).
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