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Arvinas, Inc. (ARVN) Surges 7.6%: Is This an Indication of Further Gains?

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Arvinas, Inc. (ARVN - Free Report) shares rallied 7.6% in the last trading session to close at $28.21. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.3% loss over the past four weeks.

The rise in share price is attributable to positive investor expectations for Arvinas’ pipeline that focuses on developing therapies that degrade disease-causing proteins. The company’s lead pipeline candidate is ARV-471 which is being evaluated in an ongoing late-stage study in patients with ER+/HER2- breast cancer. ARV-471 is being developed by Arvinas in collaboration with Pfizer.

This company is expected to post quarterly loss of $1.46 per share in its upcoming report, which represents a year-over-year change of -21.7%. Revenues are expected to be $34.53 million, up 42.7% 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 Arvinas, Inc., 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 ARVN 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 >>>>

Arvinas, Inc. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Zai Lab Limited Unsponsored ADR (ZLAB - Free Report) , finished the last trading session 10.8% higher at $39.67. ZLAB has returned 11.9% over the past month.

Zai Lab Limited Unsponsored ADR's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to -$0.99. Compared to the company's year-ago EPS, this represents a change of -15.1%. Zai Lab Limited Unsponsored ADR currently boasts a Zacks Rank of #3 (Hold).


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