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Supernus (SUPN) Moves 5.7% Higher: Will This Strength Last?

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Supernus Pharmaceuticals (SUPN - Free Report) shares soared 5.7% in the last trading session to close at $32.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.5% gain over the past four weeks.

The rise in share prices is most likely attributable to positive investor expectations for a better-than-expected earnings results. The company is expected to report its fourth-quarter results soon.

This drugmaker is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -63.2%. Revenues are expected to be $148.13 million, up 3.2% 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 Supernus, the consensus EPS estimate for the quarter has been revised 6.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SUPN 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 >>>>

Supernus is part of the Zacks Medical - Generic Drugs industry. Homology Medicines , another stock in the same industry, closed the last trading session 0.3% lower at $3.86. FIXX has returned 10.6% in the past month.

Homology Medicines' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.58. Compared to the company's year-ago EPS, this represents a change of +6.5%. Homology Medicines currently boasts a Zacks Rank of #2 (Buy).


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