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Ardelyx (ARDX) Moves 5.5% Higher: Will This Strength Last?

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Ardelyx (ARDX - Free Report) shares ended the last trading session 5.5% higher at $6.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.5% loss over the past four weeks.

The sharp stock price rally reflects rising investor confidence in the company’s strong financial performance ahead of fourth-quarter results, driven by robust and growing demand for its two marketed drugs, Ibsrela for irritable bowel syndrome and Xphozah for chronic kidney disease.

This biotechnology company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $118.71 million, up 2.2% 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 Ardelyx, the consensus EPS estimate for the quarter has been revised 9.1% 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 ARDX 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 >>>>

Ardelyx is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Ionis Pharmaceuticals (IONS - Free Report) , finished the last trading session 0.7% higher at $79.67. IONS has returned -3.3% over the past month.

For Ionis Pharmaceuticals, the consensus EPS estimate for the upcoming report has changed +2.1% over the past month to -$1.23. This represents a change of -86.4% from what the company reported a year ago. Ionis Pharmaceuticals currently has a Zacks Rank of #3 (Hold).


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