Lipocine (LPCN) Soars 5.5%: Is Further Upside Left in the Stock?

Lipocine (LPCN) shares soared 5.5% in the last trading session to close at $10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% gain over the past four weeks.

Lipocine’s stock price gain can be attributed to increasing investor confidence in recent pipeline developments of its investigational drug LPCN 1154 (oral brexanolone) for the treatment of postpartum depression. The company is evaluating the candidate in phase III study to measure improvements on standard depression scales, and if positive, will form the basis for a regulatory filing to the FDA later in 2026. Topline data are expected in the second quarter of 2026.

This specialty pharmaceutical company is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of -281.8%. Revenues are expected to be $0.1 million, down 97.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Lipocine, 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 LPCN 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 >>>>

Lipocine belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Assertio (ASRT), closed the last trading session 1% higher at $11.97. Over the past month, ASRT has returned 0.3%.

For Assertio, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$3.05. This represents a change of -84.9% from what the company reported a year ago. Assertio currently has a Zacks Rank of #2 (Buy).

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

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