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Day One Biopharmaceuticals (DAWN) Surges 26.7%: Is This an Indication of Further Gains?

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Day One Biopharmaceuticals, Inc. (DAWN - Free Report) shares rallied 26.7% in the last trading session to close at $11.33. 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 6.9% gain over the past four weeks.

The stock rallied after the company reported robust preliminary sales numbers for the fourth quarter and full-year 2025 related to its lead marketed drug, Ojemda. The drug is approved for treating patients aged six months and older with relapsed or refractory BRAF-altered pediatric low-grade glioma.

Day One reported preliminary Ojemda net product revenues of approximately $52.8 million and $155.4 million for the fourth quarter and full year 2025, respectively. Full-year 2025 revenues increased 172% year over year. For full-year 2026, the company expects Ojemda net product revenue to be between $225 million and $250 million, representing 53% year-over-year growth at the midpoint.

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 +73.9%. Revenues are expected to be $43.25 million, up 48.1% 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 Day One Biopharmaceuticals, 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 DAWN 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 >>>>

Day One Biopharmaceuticals is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, IDEAYA Biosciences, Inc. (IDYA - Free Report) , finished the last trading session 1.4% lower at $36.84. IDYA has returned 9.9% over the past month.

For IDEAYA Biosciences, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.03. This represents a change of +30.9% from what the company reported a year ago. IDEAYA Biosciences currently has a Zacks Rank of #3 (Hold).


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