Oncolytics Biotech Inc. (ONCY) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Oncolytics Biotech Inc. (ONCY)? Shares have been on the move with the stock up 69.6% over the past month. The stock hit a new 52-week high of $2.28 in the previous session. Oncolytics Biotech Inc. has gained 52.5% since the start of the year compared to the -15.7% move for the Zacks Medical sector and the -16.2% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2022, Oncolytics Biotech Inc. reported EPS of $-0.06 versus consensus estimate of $-0.09.
Valuation Metrics
Oncolytics Biotech Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Oncolytics Biotech Inc. has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Oncolytics Biotech Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Oncolytics Biotech Inc. fits the bill. Thus, it seems as though Oncolytics Biotech Inc. shares could have a bit more room to run in the near term.
How Does ONCY Stack Up to the Competition?
Shares of ONCY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Genmab AS Sponsored ADR (GMAB). GMAB has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Genmab AS Sponsored ADR beat our consensus estimate by 130.43%, and for the current fiscal year, GMAB is expected to post earnings of $1.27 per share on revenue of $1.86 billion.
Shares of Genmab AS Sponsored ADR have gained 17.9% over the past month, and currently trade at a forward P/E of 35.96X and a P/CF of 58.86X.
The Medical - Biomedical and Genetics industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ONCY and GMAB, even beyond their own solid fundamental situation.
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Oncolytics Biotech Inc. (ONCY) : Free Stock Analysis Report
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