Roivant Sciences Ltd. (ROIV) Moves 21.6% Higher: Will This Strength Last?
Roivant Sciences Ltd. (ROIV) shares rallied 21.6% in the last trading session to close at $12.41. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.6% loss over the past four weeks.
The shares of the company soared after Immunovant, a subsidiary of Roivant, announced positive initial results from its early-stage study evaluating the safety, tolerability and pharmacodynamic profiles of subcutaneously administered IMVT-1402, a next-generation FcRn inhibitor.
This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +42.9%. Revenues are expected to be $30.68 million, up 144.9% 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 Roivant Sciences Ltd., 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 ROIV 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 >>>>
Roivant Sciences Ltd. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Arcutis Biotherapeutics, Inc. (ARQT), finished the last trading session 0.9% higher at $5.83. ARQT has returned -27.9% over the past month.
Arcutis Biotherapeutics, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.13. Compared to the company's year-ago EPS, this represents a change of +40.2%. Arcutis Biotherapeutics, Inc. currently boasts a Zacks Rank of #3 (Hold).
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