Strength Seen in Collegium Pharmaceutical (COLL): Can Its 8.4% Jump Turn into More Strength?
Collegium Pharmaceutical (COLL) shares ended the last trading session 8.4% higher at $33.86. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.1% gain over the past four weeks.
The sudden soaring of the stock price was observed after the company announced its 2024 full-year financial guidance and provided a business update, signifying positive investor response. Per Collegium Pharma, Product revenues, net are expected in the range of $580-595 million in 2024. The company anticipates Adjusted operating expenses (excluding stock-based compensation) to be in the $120-125 million band and Adjusted EBITDA (excluding stock-based compensation) in the $380-395 million band, in 2024.
This specialty pharmaceutical company is expected to post quarterly earnings of $1.40 per share in its upcoming report, which represents a year-over-year change of +28.4%. Revenues are expected to be $147.65 million, up 13.9% 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 Collegium Pharmaceutical, 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 COLL 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 >>>>
Collegium Pharmaceutical belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Crinetics Pharmaceuticals, Inc. (CRNX), closed the last trading session 1.2% lower at $34.96. Over the past month, CRNX has returned 5.6%.
Crinetics Pharmaceuticals, Inc.'s consensus EPS estimate for the upcoming report has changed +0.2% over the past month to -$0.89. Compared to the company's year-ago EPS, this represents a change of -6%. Crinetics Pharmaceuticals, Inc. currently boasts a Zacks Rank of #3 (Hold).
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Collegium Pharmaceutical, Inc. (COLL) : Free Stock Analysis Report
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