Have you been paying attention to shares of Arcutis Biotherapeutics, Inc. (ARQT)? Shares have been on the move with the stock up 23% over the past month. The stock hit a new 52-week high of $19.36 in the previous session. Arcutis Biotherapeutics has gained 35.3% since the start of the year compared to the -0.4% gain for the Zacks Medical sector and the 4.9% return for the Zacks Medical - Biomedical and Genetics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 6, 2025, Arcutis Biotherapeutics reported EPS of -$0.13 versus consensus estimate of -$0.18 while it beat the consensus revenue estimate by 12.32%.
For the current fiscal year, Arcutis Biotherapeutics is expected to post earnings of -$0.46 per share on $329.85 in revenues. This represents a 60.34% change in EPS on a 67.83% change in revenues. For the next fiscal year, the company is expected to earn $0.1 per share on $430.73 in revenues. This represents a year-over-year change of 121.2% and 30.58%, respectively.
Valuation Metrics
Arcutis Biotherapeutics may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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). 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.
Arcutis Biotherapeutics has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Arcutis Biotherapeutics 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 Arcutis Biotherapeutics passes the test. Thus, it seems as though Arcutis Biotherapeutics shares could still be poised for more gains ahead.
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Arcutis Biotherapeutics, Inc. (ARQT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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