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Arvinas (ARVN) Moves 8.8% Higher: Will This Strength Last?

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Arvinas, Inc. (ARVN - Free Report) shares soared 8.8% in the last trading session to close at $9.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 53.1% loss over the past four weeks.

The stock recovered after declining initially as the company and partner Pfizer announced mixed results from a late-stage breast cancer study of lead candidate, vepdegestrant. The candidate is being developed in the phase III VERITAC-2 study as a monotherapy in adult patients with estrogen receptor-positive, human epidermal growth factor receptor 2-negative (ER+/HER2-) advanced or metastatic breast cancer (MBC) compared to AstraZeneca’s Faslodex (fulvestrant). The study achieved its primary endpoint in the estrogen receptor 1-mutant (ESR1m) patient population.

This company is expected to post quarterly loss of $0.85 per share in its upcoming report, which represents a year-over-year change of +12.4%. Revenues are expected to be $58.14 million, up 129.8% 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, the consensus EPS estimate for the quarter has been revised 26.9% 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 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 is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Certara, Inc. (CERT - Free Report) , finished the last trading session 1% higher at $11.01. CERT has returned -21.4% over the past month.

For Certara, the consensus EPS estimate for the upcoming report has changed -23.8% over the past month to $0.10. This represents no change from what the company reported a year ago. Certara currently has a Zacks Rank of #3 (Hold).


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