Strength Seen in Exelixis (EXEL): Can Its 5.6% Jump Turn into More Strength?
Exelixis EXEL shares soared 5.6% in the last trading session to close at $20.99. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.4% loss over the past four weeks.
Exelixis’ oncology portfolio has solid growth prospects. Lead drug Cabometyx has been performing impressively in the kidney cancer space. Label expansion of the drug in additional indications will be a significant boost for the company. Exelixis also has a deep promising pipeline. Investors are upbeat about the company’s performance year-to-date in 2023 and expect further traction.
This drug developer is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -32.3%. Revenues are expected to be $474.27 million, up 15.2% 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 Exelixis, the consensus EPS estimate for the quarter has been revised 6.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EXEL 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 >>>>
Exelixis is part of the Zacks Medical - Biomedical and Genetics industry. Werewolf Therapeutics, Inc. (HOWL), another stock in the same industry, closed the last trading session 3.8% lower at $2.31. HOWL has returned 8.1% in the past month.
For Werewolf Therapeutics, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. This represents a change of +32.5% from what the company reported a year ago. Werewolf Therapeutics, Inc. currently has a Zacks Rank of #3 (Hold).
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