Strength Seen in Halozyme Therapeutics (HALO): Can Its 5.3% Jump Turn into More Strength?

Halozyme Therapeutics HALO shares soared 5.3% in the last trading session to close at $34.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.9% loss over the past four weeks.

The surge in share price is attributable to positive investor sentiment around the company’s promising collaboration deals related to its ENHANCE technology used in developing subcutaneous formulations of drugs with several pharma companies.

This biopharmaceutical company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +4.3%. Revenues are expected to be $176.72 million, up 50.7% 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 Halozyme Therapeutics, the consensus EPS estimate for the quarter has been revised 25.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HALO 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 >>>>

Halozyme Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Alnylam Pharmaceuticals ALNY, closed the last trading session 1.1% higher at $187.52. Over the past month, ALNY has returned -16.8%.

For Alnylam , the consensus EPS estimate for the upcoming report has changed -41.6% over the past month to -$1.96. This represents a change of +2% from what the company reported a year ago. Alnylam currently has a Zacks Rank of #3 (Hold).

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