Yahoo Finance Why Earnings Season Could Be Great for Allogene Therapeutics (ALLO)
Investors are always looking for stocks that are poised to beat at earnings season and Allogene Therapeutics, Inc. ALLO may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Allogene Therapeutics is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for ALLO in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 56 cents per share for ALLO, compared to a broader Zacks Consensus Estimate at a loss of 57 cents per share. This suggests that analysts have very recently bumped up their estimates for ALLO, giving the stock a Zacks Earnings ESP of +2.44% heading into earnings season.
Allogene Therapeutics, Inc. Price and EPS Surprise
Allogene Therapeutics, Inc. price-eps-surprise | Allogene Therapeutics, Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that ALLO has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Allogene Therapeutics, and that a beat might be in the cards for the upcoming report.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
