Montes Archimedes Acquisition (ROIV) Surges 7.8%: Is This an Indication of Further Gains?

Roivant Sciences Ltd. (ROIV) shares ended the last trading session 7.8% higher at $15.28. 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 20.6% gain over the past four weeks.

Roivant shares gained after the company, along with its partner, Priovant Therapeutics, announced that their investigational candidate, brepocitinib, met the primary endpoint and all nine key secondary endpoints, with statistical significance, in the phase III VALOR study for dermatomyositis (DM). The once-daily oral therapy delivered rapid, durable, and broad improvements in skin and muscle disease, steroid sparing and functional outcomes, marking the first-ever positive outcome for a 52-week placebo-controlled study in DM, and the first-ever positive registrational study for a targeted therapy in DM. The candidate was also well-tolerated in the late-stage study and demonstrated a safety profile consistent with prior studies of the candidate. Based on the encouraging data, Priovant is planning a regulatory filing for brepocitinib for DM in the first half of 2026.

This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +10.3%. Revenues are expected to be $6.24 million, up 39.5% 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 Montes Archimedes Acquisition, 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 ROIV 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 >>>>

Montes Archimedes Acquisition belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, ADC Therapeutics SA (ADCT), closed the last trading session 1.8% lower at $3.25. Over the past month, ADCT has returned 6.4%.

ADC Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.37. Compared to the company's year-ago EPS, this represents a change of +11.9%. ADC Therapeutics currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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