Exelixis EXEL shares ended the last trading session 8.6% higher at $28.50. 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 4.5% loss over the past four weeks.
Exelixis’ shares gained on a favorable court ruling against MSN Laboratories for a generic product of lead drug Cabometyx (related to cabozantinib). The Delaware District Court ruled in Exelixis’ favor, rejecting MSN’s challenge to three listed patents related to related to cabozantinib.
This drug developer is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +320%. Revenues are expected to be $490.32 million, up 3.9% 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 Exelixis, the consensus EPS estimate for the quarter has been revised 1% 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 EXEL 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 >>>>
Exelixis is part of the Zacks Medical - Biomedical and Genetics industry. Inovio Pharmaceuticals (INO), another stock in the same industry, closed the last trading session 2.1% lower at $5.58. INO has returned -16.4% in the past month.
For Inovio , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.20. This represents a change of -11.1% from what the company reported a year ago. Inovio currently has a Zacks Rank of #4 (Sell).
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