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Arcutis Biotherapeutics, Inc. (ARQT) Hits Fresh High: Is There Still Room to Run?

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Have you been paying attention to shares of Arcutis Biotherapeutics, Inc. (ARQT - Free Report) ? Shares have been on the move with the stock up 17.3% over the past month. The stock hit a new 52-week high of $27.08 in the previous session. Arcutis Biotherapeutics has gained 78.9% since the start of the year compared to the 4.3% gain for the Zacks Medical sector and the 12% return for the Zacks Medical - Biomedical and Genetics industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 28, 2025, Arcutis Biotherapeutics reported EPS of $0.06 versus consensus estimate of -$0.1 while it beat the consensus revenue estimate by 12.32%.

For the current fiscal year, Arcutis Biotherapeutics is expected to post earnings of -$0.24 per share on $360.24 in revenues. This represents a 79.31% change in EPS on a 83.29% change in revenues. For the next fiscal year, the company is expected to earn $0.41 per share on $439.41 in revenues. This represents a year-over-year change of 273.61% and 21.97%, respectively.

Valuation Metrics

While Arcutis Biotherapeutics has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Arcutis Biotherapeutics has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Arcutis Biotherapeutics currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Arcutis Biotherapeutics fits the bill. Thus, it seems as though Arcutis Biotherapeutics shares could still be poised for more gains ahead.

How Does ARQT Stack Up to the Competition?

Shares of ARQT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Exact Sciences Corporation (EXAS - Free Report) . EXAS has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.

Earnings were strong last quarter. Exact Sciences Corporation beat our consensus estimate by 1,200.00%, and for the current fiscal year, EXAS is expected to post earnings of $0.38 per share on revenue of $3.16 billion.

Shares of Exact Sciences Corporation have gained 12.5% over the past month, and currently trade at a forward P/E of 168.59X and a P/CF of 11.23X.

The Medical - Biomedical and Genetics industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ARQT and EXAS, even beyond their own solid fundamental situation.


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