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Arvinas, Inc. (ARVN) Moves 13% Higher: Will This Strength Last?

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Arvinas, Inc. (ARVN - Free Report) shares ended the last trading session 13% higher at $95.47. 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 11.2% gain over the past four weeks.

Arvinas’ share price is rising after it announced a global collaboration with Pfizer to co-develop and co-commercialize its investigational breast cancer therapy candidate, ARV-471. Per the deal, Arvinas will receive an upfront payment of $650 million. It will also be eligible to receive a potential $1.4 billion in milestone payments. Separately, Pfizer will acquire approximately 7% equity stake in Arvinas for $350 million. While, ARV-471 is currently being evaluated in early-stage studies for metastatic breast cancer, Arvinas and Pfizer also anticipate starting phase III studies in 2022.

This company is expected to post quarterly loss of $0.84 per share in its upcoming report, which represents a year-over-year change of -29.2%. Revenues are expected to be $5.22 million, down 9.2% 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 Arvinas, Inc., 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 ARVN 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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