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Strength Seen in Ionis Pharmaceuticals (IONS): Can Its 8.5% Jump Turn into More Strength?

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Ionis Pharmaceuticals (IONS - Free Report) shares rallied 8.5% in the last trading session to close at $46.28. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.4% gain over the past four weeks.

This rise in share price is attributable to positive results reported by the company from a late-stage study which supported the benefits of olezarsen to treat familial chylomicronemia syndrome (FCS), a rare genetic disorder wherein the body is unable to breakdown fats. Based on these results, Ionis plans to file a regulatory submission for the drug. Currently, there is FDA approved therapy for FCS.

This drug discovery and development company is expected to post quarterly loss of $1.04 per share in its upcoming report, which represents a year-over-year change of -215.2%. Revenues are expected to be $132.98 million, down 16.9% 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 Ionis Pharmaceuticals, 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 IONS 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 >>>>

Ionis Pharmaceuticals is part of the Zacks Medical - Drugs industry. Zoetis (ZTS - Free Report) , another stock in the same industry, closed the last trading session 0.5% lower at $176.87. ZTS has returned -5% in the past month.

For Zoetis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.36. This represents a change of +12.4% from what the company reported a year ago. Zoetis currently has a Zacks Rank of #3 (Hold).


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