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Seattle Genetics (SGEN) Moves 12.7% Higher: Will This Strength Last?

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Seattle Genetics (SGEN) shares soared 12.7% in the last trading session to close at $165.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% gain over the past four weeks.

Shares of the company were up after rumors of a potential acquisition by pharma giant Merck do the rounds in the market.

This biotechnology company is expected to post quarterly loss of $0.82 per share in its upcoming report, which represents a year-over-year change of -74.5%. Revenues are expected to be $443.81 million, up 14.2% 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 Seattle Genetics, 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 SGEN 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 >>>>

Seattle Genetics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Immunocore Holdings PLC Sponsored ADR (IMCR), closed the last trading session 11.4% higher at $33.13. Over the past month, IMCR has returned 2.4%.

Immunocore Holdings PLC Sponsored ADR's consensus EPS estimate for the upcoming report has changed +9.1% over the past month to -$0.72. Compared to the company's year-ago EPS, this represents a change of +30.8%. Immunocore Holdings PLC Sponsored ADR currently boasts a Zacks Rank of #2 (Buy).


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