Rigel (RIGL) Surges 19.7%: Is This an Indication of Further Gains?
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Rigel Pharmaceuticals (RIGL) shares ended the last trading session 19.7% higher at $16.35. 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 1.6% gain over the past four weeks.
Earlier this month, the company enrolled the first patient in a phase Ib/II triplet therapy study, which evaluated its marketed drug Rezlidhia (olutasidenib) in combination with decitabine and venetoclax for the treatment of mutated isocitrate dehydrogenase-1 (mIDH1) acute myeloid leukemia (AML). This might have driven the share price rally.
This drug developer is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +103.3%. Revenues are expected to be $40.69 million, up 44.7% 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 Rigel, 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 RIGL 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 >>>>
Rigel is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Indivior PLC (INDV), finished the last trading session 0.5% higher at $9.32. INDV has returned -25.5% over the past month.
Indivior's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.44. Compared to the company's year-ago EPS, this represents a change of +29.4%. Indivior currently boasts a Zacks Rank of #5 (Strong Sell).
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Rigel Pharmaceuticals, Inc. (RIGL) : Free Stock Analysis Report
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