Yahoo Finance Strength Seen in Seattle Genetics (SGEN): Can Its 14.5% Jump Turn into More Strength?
Seattle Genetics (SGEN) shares soared 14.5% in the last trading session to close at $197.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.5% gain over the past four weeks.
The sudden soar in the stock price was observed after Seagen's press release on Monday, stating that the pharma giant, Pfizer PFE, is set to acquire the company for $229 per Seagen share in cash, bringing up the valuation of the company to a whopping $43 billion. The anticipated merger will add Seagen's portfolio of antibody drug conjugates and technology to Pfizer's already robust portfolio of oncology drugs. Both companies expect to complete the trasaction in late 2023, or by early 2024, subject to the fulfillment of certain terms and conditions.
This biotechnology company is expected to post quarterly loss of $0.83 per share in its upcoming report, which represents a year-over-year change of -12.2%. Revenues are expected to be $522.05 million, up 22.4% 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 8.6% 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 is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Bluebird Bio (BLUE), finished the last trading session 12.7% higher at $4.70. BLUE has returned -29.6% over the past month.
Bluebird's consensus EPS estimate for the upcoming report has changed -45.2% over the past month to -$0.45. Compared to the company's year-ago EPS, this represents a change of +75.3%. Bluebird currently boasts a Zacks Rank of #3 (Hold).
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Pfizer Inc. (PFE) : Free Stock Analysis Report
Seagen Inc. (SGEN) : Free Stock Analysis Report
bluebird bio, Inc. (BLUE) : Free Stock Analysis Report
