Yahoo Finance Alnylam (ALNY) Soars 5.3%: Is Further Upside Left in the Stock?
Alnylam Pharmaceuticals (ALNY) shares ended the last trading session 5.3% higher at $165.70. 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 5.4% gain over the past four weeks.
The sudden rise in the stock price has likely been driven by the growing optimism of investors regarding Amvuttra’s (vutrisiran) potential to earn increasing revenues for the company. The drug, approved for treating adult patients with polyneuropathy of hereditary transthyretin-mediated (ATTR) amyloidosis, has witnessed solid uptake so far. Amvuttra recorded sales worth $195 million in the first quarter of 2024, up 92% on a reported basis. Alnylam is also looking to expand the drug’s indication to include cardiomyopathy of ATTR amyloidosis, which, if approved, could further boost sales. Sales of other approved drugs of the company are also contributing to the top line. Moreover, the company’s clinical-stage pipeline comprising several candidates being developed for different therapeutic areas, is also progressing well.
This RNA interference drug developer is expected to post quarterly loss of $0.78 per share in its upcoming report, which represents a year-over-year change of +64.7%. Revenues are expected to be $450.23 million, up 41.3% 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 Alnylam, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ALNY 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 >>>>
Alnylam belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Acadia Pharmaceuticals (ACAD), closed the last trading session 3.7% higher at $15.30. Over the past month, ACAD has returned -5.1%.
For Acadia , the consensus EPS estimate for the upcoming report has changed -2.8% over the past month to $0.16. This represents a change of +1500% from what the company reported a year ago. Acadia currently has a Zacks Rank of #3 (Hold).
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