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Sorrento Therapeutics (SRNE) Gains But Lags Market: What You Should Know

Zacks Equity Research
·2 min read

In the latest trading session, Sorrento Therapeutics (SRNE) closed at $7.16, marking a +1.13% move from the previous day. This change lagged the S&P 500's 1.78% gain on the day. Elsewhere, the Dow gained 2.06%, while the tech-heavy Nasdaq added 1.85%.

Heading into today, shares of the biopharmaceutical company had lost 34.87% over the past month, lagging the Medical sector's loss of 2.16% and the S&P 500's loss of 1.1% in that time.

Wall Street will be looking for positivity from SRNE as it approaches its next earnings report date. The company is expected to report EPS of -$0.21, up 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.32 million, up 78.46% from the year-ago period.

SRNE's full-year Zacks Consensus Estimates are calling for earnings of $4.96 per share and revenue of $2.05 billion. These results would represent year-over-year changes of +333.96% and +6411.95%, respectively.

Investors should also note any recent changes to analyst estimates for SRNE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SRNE is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, SRNE currently has a Forward P/E ratio of 1.43. This valuation marks a discount compared to its industry's average Forward P/E of 24.24.

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SRNE in the coming trading sessions, be sure to utilize Zacks.com.


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