Repligen (RGEN) shares soared 15.3% in the last trading session to close at $203.64. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 18.8% gain over the past four weeks.
The surge in stock price can be attributed to investors’ expectations for the company’s better-than-anticipated second-quarter results, which will be announced on Aug 2. Our proven model predicts an earnings beat for Repligen in the to-be-reported quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. Repligen’s Earnings ESP is +4.79% and the stock carries a Zacks Rank #2.
This drug developer is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -8.9%. Revenues are expected to be $189.06 million, up 16% 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 Repligen, the consensus EPS estimate for the quarter has been revised marginally 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 RGEN 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 >>>>
Repligen is part of the Zacks Medical – Biomedical and Genetics industry. Blueprint Medicines (BPMC), another stock in the same industry, closed the last trading session 0.2% higher at $55.24. BPMC has returned 4% in the past month.
For Blueprint Medicines
, the consensus EPS estimate for the upcoming report has changed +33.2% over the past month to -$2.19. This represents a change of -17.7% from what the company reported a year ago. Blueprint Medicines currently has a Zacks Rank of #3 (Hold).
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