ImmunityBio (IBRX) Moves 41.9% Higher: Will This Strength Last?

ImmunityBio (IBRX) shares soared 41.9% in the last trading session to close at $8.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.1% loss over the past four weeks.

ImmunityBio’s sharp share price surge was driven by a major regulatory breakthrough after the European Commission granted conditional approval for its Anktiva plus BCG therapy to treat BCG-unresponsive non-muscle invasive bladder cancer. The decision expands the company’s commercial footprint to 33 countries and marks the first immunotherapy authorized in Europe for this indication, significantly strengthening its growth outlook. The approval was supported by strong clinical data showing high complete response rates and durable outcomes upon treatment with the therapy.

This immunotherapy company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of +46.7%. Revenues are expected to be $37.1 million, up 391.4% 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 ImmunityBio, the consensus EPS estimate for the quarter has been revised 6.3% 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 IBRX 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 >>>>

ImmunityBio is part of the Zacks Medical - Biomedical and Genetics industry. Mirum Pharmaceuticals, Inc. (MIRM), another stock in the same industry, closed the last trading session 2.2% higher at $105.1. MIRM has returned 11.9% in the past month.

For Mirum Pharmaceuticals, the consensus EPS estimate for the upcoming report has changed +50.9% over the past month to $0.02. This represents a change of +104.1% from what the company reported a year ago. Mirum Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

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

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