A strong stock as of late has been Puma Biotech (PBYI). Shares have been marching higher, with the stock up 40.6% over the past month. The stock hit a new 52-week high of $5.06 in the previous session. Puma Biotech has gained 59% since the start of the year compared to the -7.5% move for the Zacks Medical sector and the -0.9% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 7, 2025, Puma Biotech reported EPS of $0.15 versus consensus estimate of $0.11.
For the current fiscal year, Puma Biotech is expected to post earnings of $0.65 per share on $216.32 in revenues. This represents a -16.67% change in EPS on a -6.15% change in revenues. For the next fiscal year, the company is expected to earn $0.5 per share on $235.8 in revenues. This represents a year-over-year change of -22.31% and 9.01%, respectively.
Valuation Metrics
While Puma Biotech has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Puma Biotech has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 7.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.2X. On a trailing cash flow basis, the stock currently trades at 5.7X versus its peer group's average of 14.9X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Puma Biotech an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Puma Biotech currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Puma Biotech passes the test. Thus, it seems as though Puma Biotech shares could still be poised for more gains ahead.
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Puma Biotechnology, Inc. (PBYI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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