Jazz Pharmaceuticals, Inc. ( JAZZ - Snapshot Report ) has an amazing chart, recently jumping into a new all-time high while the market traded lower on uncertainty in the Euro zone. With an average earnings surprise of 7% over the last four quarters and bullish 30% growth projection, this Zacks #1 Rank stock plays a tune for momentum.

Company Description

Jazz Pharmaceuticals, Inc. develops and commercializes pharmaceutical products with an emphasis in epilepsy and narcolepsy. The company was founded in 2003 and has a market cap of $1.91 billion.

Very few stocks have held up in the tough market of the last few months. Put Jazz at the top of that list, recently spiking into a new all-time high on awesome Q2 results from late July and rising estimates.

Second-Quarter Results

Revenue for the period was up 58% from last year to $65 million. Earnings also came in strong at 75 cents, 9% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 7% over the last four quarters.

The good quarter was driven by the company's narcolepsy drug, Xyrem, where sales were up 67% from last year to $56 million.

Financial Profile

Jazz has been able to use its earnings momentum to strengthen its financial profile, with cash and short-term investments jumping to $102 million from just $10 million last year.

Estimates

We saw some pretty solid movement in estimates off the good quarter, with the current year adding 22 cents in the last month to $3.10. The next-year estimate is pegged at $4.03, a bullish 30% growth projection.

Valuation

But in spite of the gains, the valuation picture still looks compelling, with a PEG ratio of .47 well below the benchmark of 1 for value.

12-Month Chart

On the chart, shares recently jumped into a new all-time high on the strong earnings momentum. Look for support from the long-term trend, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.