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Strength Seen in BridgeBio Pharma (BBIO): Can Its 16.0% Jump Turn into More Strength?

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BridgeBio Pharma (BBIO - Free Report) shares rallied 16% in the last trading session to close at $33.73. 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 5.8% gain over the past four weeks.

The sudden rise in the stock price was observed after BridgeBio announced encouraging commercial progress for its recently approved drug, Attruby (acoramidis), pipeline progress and expected 2025 milestones. Attruby received FDA approval in November 2024 as a near-complete TTR stabilizer to reduce cardiovascular death and cardiovascular-related hospitalization in adult patients with transthyretin amyloid cardiomyopathy. So far, the company has witnessed remarkable momentum for the drug with 430 patient prescriptions written by 248 physicians. Approvals in other geographies for the same indication are anticipated in 2025.

This rare disease drug developer is expected to post quarterly loss of $1.09 per share in its upcoming report, which represents a year-over-year change of -13.5%. Revenues are expected to be $5.3 million, up 202.9% 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 BridgeBio Pharma, the consensus EPS estimate for the quarter has been revised 4.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BBIO 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 >>>>

BridgeBio Pharma is part of the Zacks Medical - Generic Drugs industry. Bausch Health (BHC - Free Report) , another stock in the same industry, closed the last trading session 6.1% lower at $7.40. BHC has returned 0.9% in the past month.

For Bausch, the consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $1.12. This represents a change of -2.6% from what the company reported a year ago. Bausch currently has a Zacks Rank of #2 (Buy).


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