Merus N.V. (MRUS) Surges 16.3%: Is This an Indication of Further Gains?
Merus N.V. MRUS shares soared 16.3% in the last trading session to close at $33.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.2% gain over the past four weeks.
This surge in share price is attributable to positive investor expectations on Merus’ pipeline focused on developing novel antibody therapeutics targeting oncology indications. A data readout from separate phase I/II studies on zenocutuzumab, Merus’ most advanced pipeline candidate, in two NRG1 fusion positive cancers – non-small cell lung cancer (NSCLC) and pancreatic cancer (PDAC) – is expected in first-half 2024. Based on these results, it will determine the plans for potential regulatory submissions for the candidate with the FDA.
By mid-2024, Merus intends to start a late-stage study on petosemtamab, one of its other pipeline candidates, in previously treated recurrent or metastatic head & neck squamous cell carcinoma (HNSCC).
This company is expected to post quarterly loss of $0.70 per share in its upcoming report, which represents a year-over-year change of +61.3%. Revenues are expected to be $10.43 million, down 2.3% 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 Merus N.V., 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 MRUS 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 >>>>
Merus N.V. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Kymera Therapeutics, Inc. KYMR, closed the last trading session 2.8% lower at $26.42. Over the past month, KYMR has returned 18.2%.
Kymera Therapeutics, Inc.'s consensus EPS estimate for the upcoming report has changed +8.9% over the past month to -$0.41. Compared to the company's year-ago EPS, this represents a change of +31.7%. Kymera Therapeutics, Inc. currently boasts a Zacks Rank of #3 (Hold).
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