Send me real-time posts from this site at my email
Zacks

Strength Seen in Neurocrine (NBIX): Can Its 11.1% Jump Turn into More Strength?

Neurocrine Biosciences (NBIX) shares soared 11.1% in the last trading session to close at $97.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.8% loss over the past four weeks.

Last month, the company announced top-line results from the phase II INTERACT study evaluating luvadaxistat for the treatment of negative symptoms and cognitive impairment associated with schizophrenia. The study did not meet its primary endpoint as measured by the change from baseline. However, the study met secondary endpoints of cognitive assessment, which merit further clinical evaluation. This might have been driving the rally.

Price and Consensus

This biopharmaceutical company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -37.8%. Revenues are expected to be $250.51 million, up 5.7% 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 Neurocrine, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NBIX 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 >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Neurocrine Biosciences, Inc. (NBIX): Get Free Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue