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Surging Earnings Estimates Signal Good News for Ariad Pharmaceuticals (ARIA)

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Ariad Pharmaceuticals Inc. is a global oncology company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on ARIA’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Ariad Pharmaceuticals could be a solid choice for investors.

Current Quarter Estimates for ARIA

In the past 30 days, 3 estimates have gone higher for Ariad Pharmaceuticals, while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 22 cents a share 30 days ago, to a loss of 10 cents a share today, a significant move.

Current Year Estimates for ARIA

Meanwhile, Ariad Pharmaceuticals’ current year figures are also looking quite promising, with 4 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, narrowing from a loss of 95 cents per share 30 days ago to a loss of 69 per share today, an increase of 37.7%.

Bottom Line

The stock has also started to move higher lately, adding 14.5% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 ( Hold) stock to profit in the near future.

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