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Legend Biotech (LEGN) Surges 6.0%: Is This an Indication of Further Gains?

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Legend Biotech Corporation Sponsored ADR (LEGN - Free Report) shares soared 6% in the last trading session to close at $42.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.9% gain over the past four weeks.

The sudden rise in the stock price is likely fueled by investor optimism over the continued strong sales of Carvykti, Legend Biotech’s one-time therapy for relapsed or refractory multiple myeloma, developed and marketed in partnership with Johnson & Johnson. The company has a broad clinical pipeline comprising several oncology candidates being developed across various stages. 

This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -260%. Revenues are expected to be $233.67 million, up 25.3% 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 Legend Biotech, the consensus EPS estimate for the quarter has been revised 4.1% 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 LEGN 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 >>>>

Legend Biotech is part of the Zacks Medical - Biomedical and Genetics industry. Vanda Pharmaceuticals (VNDA - Free Report) , another stock in the same industry, closed the last trading session 1% higher at $4.86. VNDA has returned 6.2% in the past month.

For Vanda, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.34. This represents a change of -325% from what the company reported a year ago. Vanda currently has a Zacks Rank of #3 (Hold).


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