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Regeneron (REGN) Soars 6.8%: Is Further Upside Left in the Stock?

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Regeneron (REGN - Free Report) shares ended the last trading session 6.8% higher at $802.16. 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 0.4% gain over the past four weeks.

Share prices rose after the company announced positive data from a late-stage study evaluating its blockbuster drug Dupixent in chronic obstructive pulmonary disease (COPD) indication. Data from this study showed that treatment with Dupixent achieved a 30% reduction in moderate or severe acute COPD exacerbations, the study’s primary endpoint. Treatment with the drug also led to improved lung function, quality of life and reduction in disease symptoms. Investors cheered on this news as a potential approval in COPD indication will drive Dupixent’s sales even higher.

This biopharmaceutical company is expected to post quarterly earnings of $9.54 per share in its upcoming report, which represents a year-over-year change of -17%. Revenues are expected to be $2.94 billion, down 0.9% 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 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 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 is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Seagen (SGEN - Free Report) , finished the last trading session 0.1% lower at $198.10. SGEN has returned 23.4% over the past month.

For Seagen, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to -$0.83. This represents a change of -12.2% from what the company reported a year ago. Seagen currently has a Zacks Rank of #3 (Hold).

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