Strength Seen in Ardelyx (ARDX): Can Its 15.0% Jump Turn into More Strength?

Ardelyx (ARDX) shares ended the last trading session 15% higher at $7.76. 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 15.6% gain over the past four weeks.

The sharp stock price rally reflects rising investor confidence in the company’s strong financial performance ahead of fourth-quarter results, driven by robust and growing demand for its two marketed drugs, Ibsrela for irritable bowel syndrome and Xphozah for chronic kidney disease. Earlier in January, Ardelyx reported preliminary product revenue figures for the fourth-quarter and the full year. Ibsrela reportedly generated total revenue of approximately $274 million in 2025, representing a 73% growth compared to 2024, including about $87 million in the fourth quarter. On the other hand, Xphozah reportedly generated total revenue of approximately $104 million in 2025, including about $87 million in the fourth quarter.

This biotechnology company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $118.08 million, up 1.7% 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 Ardelyx, the consensus EPS estimate for the quarter has been revised 80% 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 ARDX 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 >>>>

Ardelyx is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Indivior PLC (INDV), finished the last trading session 1.3% higher at $32.95. INDV has returned -10.7% over the past month.

Indivior's consensus EPS estimate for the upcoming report has changed +10% over the past month to $0.65. Compared to the company's year-ago EPS, this represents a change of +103.1%. Indivior 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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