Strength Seen in Merus N.V. (MRUS): Can Its 12.6% Jump Turn into More Strength?
Merus N.V. MRUS shares ended the last trading session 12.6% higher at $18.03. 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 3.1% gain over the past four weeks.
The rise in Merus’ stock price is attributable to positive investor sentiments on the company’s pipeline development which is focused on developing antibody therapeutics targeting cancer indications. The company is developing zenocutuzumab, its lead candidate targeting NRG1+ cancer and other solid tumor indications. MRUS plans to provides an update on the candidate’s regulatory pathway in first-half 2023.
This company is expected to post quarterly loss of $0.84 per share in its upcoming report, which represents a year-over-year change of -147.1%. Revenues are expected to be $8.34 million, down 43.3% 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 Merus N.V., the consensus EPS estimate for the quarter has been revised 7.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MRUS 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 >>>>
Merus N.V. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Ligand Pharmaceuticals LGND, closed the last trading session 1.2% lower at $69.91. Over the past month, LGND has returned 2.7%.
For Ligand , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.23. This represents a change of -31.7% from what the company reported a year ago. Ligand currently has a Zacks Rank of #5 (Strong Sell).
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