Xeris Biopharma (XERS) Surges 14.2%: Is This an Indication of Further Gains?

Xeris Biopharma (XERS) shares ended the last trading session 14.2% higher at $9.27. 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 8.7% gain over the past four weeks.

The price surge can be attributed to positive investor expectations regarding Xeris’ growth prospects, especially its portfolio of marketed drugs, Recorlev, which is approved for the treatment of endogenous Cushing’s syndrome, Gvoke, a ready-to-use liquid glucagon for the treatment of severe hypoglycemia and Keveyis, which is approved for treating primary periodic paralysis.

This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +116.7%. Revenues are expected to be $74.35 million, up 37% 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 Xeris Biopharma, the consensus EPS estimate for the quarter has been revised 60.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on XERS 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 >>>>

Xeris Biopharma is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Zoetis (ZTS), finished the last trading session 0.9% lower at $142.12. ZTS has returned -2.7% over the past month.

Zoetis' consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $1.62. Compared to the company's year-ago EPS, this represents a change of +2.5%. Zoetis 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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