Shares of Halozyme Therapeutics (HALO) have been strong performers lately, with the stock up 20.6% over the past month. The stock hit a new 52-week high of $74.44 in the previous session. Halozyme Therapeutics has gained 53.4% since the start of the year compared to the -2.1% gain for the Zacks Medical sector and the 3.6% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great 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 5, 2025, Halozyme Therapeutics reported EPS of $1.54 versus consensus estimate of $1.23 while it beat the consensus revenue estimate by 13.84%.
For the current fiscal year, Halozyme Therapeutics is expected to post earnings of $6.18 per share on $1.32 in revenues. This represents a 46.1% change in EPS on a 29.58% change in revenues. For the next fiscal year, the company is expected to earn $7.56 per share on $1.59 in revenues. This represents a year-over-year change of 22.33% and 20.91%, respectively.
Valuation Metrics
While Halozyme Therapeutics 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Halozyme Therapeutics has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.1X. On a trailing cash flow basis, the stock currently trades at 15.8X versus its peer group's average of 15.8X. Additionally, the stock has a PEG ratio of 0.38. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Halozyme Therapeutics currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Halozyme Therapeutics passes the test. Thus, it seems as though Halozyme Therapeutics shares could have a bit more room to run in the near term.
How Does HALO Stack Up to the Competition?
Shares of HALO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kamada Ltd. (KMDA). KMDA has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Kamada Ltd. beat our consensus estimate by 44.44%, and for the current fiscal year, KMDA is expected to post earnings of $0.38 per share on revenue of $180.85 million.
Shares of Kamada Ltd. have gained 2.5% over the past month, and currently trade at a forward P/E of 18.64X and a P/CF of 14.28X.
The Medical - Biomedical and Genetics industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HALO and KMDA, even beyond their own solid fundamental situation.
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Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report Kamada Ltd. (KMDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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