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Regeneron (REGN) Moves 4.4% Higher: Will This Strength Last?

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Regeneron (REGN - Free Report) shares soared 4.4% in the last trading session to close at $580.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.3% loss over the past four weeks.

The rise in share prices is attributable to positive investor expectations for Regeneron’s portfolio of commercial drugs targeting serious medical conditions like asthma and atopic dermatitis. Earlier this month, the company’s blockbuster drug Dupixent received label expansion from the FDA, thereby becoming the first biologic medicine in the United States for treating moderate-to-severe atopic dermatitis (AD) in children aged 6 months to 5 years. Following this label expansion, the drug is now approved for treating AD in patients from infancy through adulthood.

This biopharmaceutical company is expected to post quarterly earnings of $9.94 per share in its upcoming report, which represents a year-over-year change of -61.5%. Revenues are expected to be $2.77 billion, down 46% 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 Regeneron, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on REGN 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 >>>>

Regeneron belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Rapt Therapeutics (RAPT - Free Report) , closed the last trading session 14% higher at $16.66. Over the past month, RAPT has returned 10.1%.

For Rapt Therapeutics, the consensus EPS estimate for the upcoming report has changed -3% over the past month to -$0.75. This represents a change of -19.1% from what the company reported a year ago. Rapt Therapeutics currently has a Zacks Rank of #3 (Hold).


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