Yahoo Finance Argenx (ARGX) Surges 11.7%: Is This an Indication of Further Gains?
argenex SE (ARGX) shares soared 11.7% in the last trading session to close at $440.59. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.5% gain over the past four weeks.
The sudden rise in the stock price was observed after the company announced that the FDA approved its subcutaneously administered Vyvgart Hytrulo (efgartigimod) for a second indication — chronic inflammatory demyelinating polyneuropathy (CIDP). The drug has been approved as a once-weekly 30-to-90-second subcutaneous injection to treat adult patients with CIDP, a rare autoimmune disease. Per argenx, the approval of Vyvgart Hytrulo makes it the first FDA-approved medication with a novel mechanism of action to treat CIDP in more than 30 years. Vyvgart Hytrulo was initially approved by the FDA last year to treat adults with generalized myasthenia gravis (gMG). An intravenous formulation of the drug was approved by the FDA in 2021 to treat gMG and is marketed under the trade name Vyvgart.
This company is expected to post quarterly loss of $0.86 per share in its upcoming report, which represents a year-over-year change of +49.1%. Revenues are expected to be $439.73 million, up 56.4% 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 Argenx, the consensus EPS estimate for the quarter has been revised 2.3% 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 ARGX 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 >>>>
Argenx is part of the Zacks Medical - Biomedical and Genetics industry. BeiGene, Ltd. (BGNE), another stock in the same industry, closed the last trading session 2% higher at $159.15. BGNE has returned 2.2% in the past month.
BeiGene's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$2.25. Compared to the company's year-ago EPS, this represents a change of +38.2%. BeiGene currently boasts a Zacks Rank of #3 (Hold).
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