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Indivior (INDV) Moves 5.7% Higher: Will This Strength Last?

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Indivior PLC (INDV - Free Report) shares rallied 5.7% in the last trading session to close at $14.74. 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 8.5% gain over the past four weeks.

The sudden rise in the stock price can be attributed to the positive investor mindset regarding the significant growth potential of the company's marketed treatments for addiction, including Sublocade (buprenorphine extended-release) injection for opioid use disorder and Opvee (nalmefene) nasal spray for opioid overdose recovery.

This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -43.2%. Revenues are expected to be $239.9 million, down 19.8% 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 Indivior, 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 INDV 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 >>>>

Indivior belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Amneal Pharmaceuticals (AMRX - Free Report) , closed the last trading session 0.5% lower at $8.09. Over the past month, AMRX has returned 11.1%.

Amneal's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. Compared to the company's year-ago EPS, this represents a change of +6.3%. Amneal currently boasts a Zacks Rank of #2 (Buy).


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