BridgeBio Pharma BBIO shares soared 15.1% in the last trading session to close at $90.17. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 16.2% gain over the past four weeks.
The upside came after rival AstraZeneca announced its phase III CARDIO-TTRansform study evaluating Wainua in patients with transthyretin amyloid cardiomyopathy (ATTR-CM) failed to meet its primary endpoint. Investors viewed the setback as a favorable development for BridgeBio’s sole marketed drug, Attruby, as it could strengthen the drug’s competitive position in the ATTR-CM space by removing a potential rival.
This rare disease drug developer is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of +32.6%. Revenues are expected to be $221.28 million, up 100.1% 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 BridgeBio Pharma, 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 BBIO 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 >>>>
BridgeBio Pharma belongs to the Zacks Medical – Generic Drugs industry. Another stock from the same industry, Amphastar Pharmaceuticals AMPH, closed the last trading session 0.7% higher at $19.02. Over the past month, AMPH has returned -7%.
For Amphastar, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.68. This represents a change of -20% from what the company reported a year ago. Amphastar currently has a Zacks Rank of #5 (Strong Sell).
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BridgeBio Pharma, Inc. (BBIO) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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