Spectrum Pharmaceuticals, Inc.
(SPPI - Analyst Report
) saw huge gains in October, jumping more than 50% after posting a huge Q2 earnings surprise of 222%. With estimates on the rise and a high industry rank, this Zacks #1 Rank stock is a biotech with plenty of momentum.
Spectrum Pharmaceuticals, Inc. is a commercial stage biotechnology company that focuses on oncology and hematology. The company was founded in 1987 and has a market cap of $633 million.
SPPI got a big lift from the bullish market in October, but shares also gained traction from awesome Q3 results late in the month that came in well ahead of expectations.
Revenue for the period was up 205% from last year to $51 million. Earnings also came in strong at 29 cents, 222% ahead of the Zacks Consensus Estimate, where Spectrum has one match and three big beats in the last four quarters.
The good quarter was driven by incredible gains in FUSILEV, a chemotherapy agent used in the treatment of colorectal cancer, where sales jumped to $41 million from $6 million last year.
Spectrum has used its earnings momentum to strengthen its financial profile, with cash and short-term investments up $64 million to $149 million against no long-term debt.
We saw some very bullish movement in estimates off the good quarter, with the current year up 53% to $1.04.
But in spite of the gains, the valuation picture still looks solid, with SPPI's forward P/E of 11X a discount to its industry average of 15X.
On the chart, shares rallied hard in October to hit a new all-time high. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.