Strength Seen in ImmunoGen (IMGN): Can Its 11.7% Jump Turn into More Strength?
ImmunoGen (IMGN) shares soared 11.7% in the last trading session to close at $13.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.8% loss over the past four weeks.
Last month, the company presented encouraging data from two subset analyses of the phase III confirmatory MIRASOL study, which evaluated the safety and efficacy of its lead drug, Elahere versus chemotherapy for treating patients with folate receptor alpha (FRα)-positive platinum-resistant ovarian cancer. The data further solidified the position of Elahere to become the new standard of care for the given patient population. This might have driven shares higher.
This drug developer is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +106.5%. Revenues are expected to be $98.55 million, up 540.8% 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 ImmunoGen, the consensus EPS estimate for the quarter has been revised 19.7% 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 IMGN 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 >>>>
ImmunoGen belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Jazz Pharmaceuticals (JAZZ), closed the last trading session 1.9% higher at $131.05. Over the past month, JAZZ has returned -3%.
For Jazz , the consensus EPS estimate for the upcoming report has changed +2.3% over the past month to $4.85. This represents a change of -6.2% from what the company reported a year ago. Jazz currently has a Zacks Rank of #2 (Buy).
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