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Puma Biotech (PBYI) Stock Jumps 10.0%: Will It Continue to Soar?

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Puma Biotech (PBYI - Free Report) shares ended the last trading session 10% higher at $5.44. 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 25.2% gain over the past four weeks.

The sudden movement in the stock price can be attributed to the positive investor mindset revolving Puma's pipeline, comprising one candidate. The company in-licensed global rights for alisertib, an aurora kinase A inhibitor, from Japan’s Takeda in 2022 and is set to begin separate mid-stage studies on the candidate for lung and breast cancer indications, soon. The company currently recognises revenues from the sale of its only marketed drug, Nerlynx, approved in the United States for two breast cancer indications.

This biopharmaceutical company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +408.3%. Revenues are expected to be $72.81 million, up 10.8% 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 Puma Biotech, 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 PBYI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Puma Biotech belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Alnylam Pharmaceuticals (ALNY - Free Report) , closed the last trading session 3.1% lower at $187.49. Over the past month, ALNY has returned 3.8%.

For Alnylam, the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to -$1.22. This represents a change of +27.4% from what the company reported a year ago. Alnylam currently has a Zacks Rank of #3 (Hold).


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