Arcutis Biotherapeutics, Inc. (ARQT) shares soared 10.8% in the last trading session to close at $16.60. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.8% gain over the past four weeks.
The stock rallied after the company announced that Padagis had requested a stay to the ongoing patent litigation between Padagis and Arcutis. The companies agreed to stay the patent lawsuit related to Arcutis’ patented product Zoryve (roflumilast) cream 0.3% for treating plaque psoriasis.
This company is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +46.9%. Revenues are expected to be $63.95 million, up 29% 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 Arcutis Biotherapeutics, 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 ARQT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Arcutis Biotherapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Codexis (CDXS), finished the last trading session 0.8% lower at $2.49. CDXS has returned -6.3% over the past month.
For Codexis
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Arcutis Biotherapeutics, Inc. (ARQT): Free Stock Analysis Report Codexis, Inc. (CDXS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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