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Strength Seen in Galapagos NV (GLPG): Can Its 8% Jump Turn into More Strength?

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Galapagos NV (GLPG - Free Report) shares ended the last trading session 8% higher at $51.99. 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% loss over the past four weeks.

The surge in stock price can be attributed to investor’s bullish outlook for Galapagos’ performance in the second half of 2022, owing to robust sales momentum. In August, the company raised its full-year Jyseleca sales guidance from €65-€75 million to €75-€85 million.

This company is expected to post quarterly loss of $1.29 per share in its upcoming report, which represents a year-over-year change of -10.3%. Revenues are expected to be $120.87 million, up 59.7% 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 Galapagos NV, the consensus EPS estimate for the quarter has been revised 19% 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 GLPG 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 >>>>

Galapagos NV is part of the Zacks Medical - Biomedical and Genetics industry. Moderna (MRNA - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $140.32. MRNA has returned -16.9% in the past month.

For Moderna, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $5.20. This represents a change of -32.5% from what the company reported a year ago. Moderna currently has a Zacks Rank of #3 (Hold).


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