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Sarepta Therapeutics (SRPT) Moves 7.8% Higher: Will This Strength Last?

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Sarepta Therapeutics (SRPT - Free Report) shares ended the last trading session 7.8% higher at $134.61. 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 6.9% gain over the past four weeks.

The sudden surge in the stock price was observed after the company announced that the FDA has accepted (under Priority Review) its efficacy supplement to the biologics license application, seeking to expand the treatment label for Elevidys for Duchenne muscular dystrophy. A final decision from the regulatory body is expected on Jun 21, 2024. Subject to approval, the filing will also convert the Elevidys accelerated approval to a traditional approval.

This biopharmaceutical company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +98.4%. Revenues are expected to be $382.11 million, up 47.9% 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 Sarepta Therapeutics, 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 SRPT 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 >>>>

Sarepta Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Mirum Pharmaceuticals, Inc. (MIRM - Free Report) , finished the last trading session 1% higher at $29.28. MIRM has returned 10% over the past month.

Mirum Pharmaceuticals, Inc.'s consensus EPS estimate for the upcoming report has changed +54.8% over the past month to -$0.33. Compared to the company's year-ago EPS, this represents a change of +66.7%. Mirum Pharmaceuticals, Inc. currently boasts a Zacks Rank of #3 (Hold).


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