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NovoCure (NVCR) Moves 49.6% Higher: Will This Strength Last?

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NovoCure (NVCR - Free Report) shares ended the last trading session 49.6% higher at $197.33. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.5% loss over the past four weeks.

The stock scored a strong price increase after receiving the go-ahead from an independent data-monitoring committee (“DMC”) on Apr 13 for the company’s LUNAR trial of tumor-treating fields in non-small cell lung cancer. The DMC found no evidence of increased systemic toxicity, and accordingly recommended the company to test 276 patients with 12 months of follow-up time instead of 534 patients with 18 months of follow-up.

Price and Consensus

Price Consensus Chart for NVCR

This oncology drug developer is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -75%. Revenues are expected to be $136.54 million, up 34.1% 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 NovoCure, 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 NVCR 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 >>>>

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