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Strength Seen in Arvinas, Inc. (ARVN): Can Its 12% Jump Turn into More Strength?

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Arvinas, Inc. (ARVN - Free Report) shares ended the last trading session 12% higher at $49.44. 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 2.1% gain over the past four weeks.

The stock surge can be attributed to the investor’s positive outlook on the company’s decision, announced earlier this month, to hire Paul McInulty as Senior Vice President of Regulatory Affairs in the company. Paul McInulty, an industry veteran is expected to bring in deeper industry insights which will help Arvinas continue with its growth trajectory.

This company is expected to post quarterly loss of $0.99 per share in its upcoming report, which represents a year-over-year change of -5.3%. Revenues are expected to be $45.63 million, up 391.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Arvinas, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Arcus Biosciences, Inc. (RCUS - Free Report) , another stock in the same industry, closed the last trading session 1.4% higher at $28.20. RCUS has returned 7.4% in the past month.

For Arcus Biosciences, Inc., the consensus EPS estimate for the upcoming report has changed +7.4% over the past month to -$1.05. This represents a change of +5.4% from what the company reported a year ago. Arcus Biosciences, Inc. currently has a Zacks Rank of #2 (Buy).


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