Strength Seen in Valneva SE Sponsored ADR (VALN): Can Its 15.8% Jump Turn into More Strength?

Valneva SE Sponsored ADR VALN shares soared 15.8% in the last trading session to close at $16.98. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.5% gain over the past four weeks.

Valneva recorded a strong price increase after it announced that its pivotal Phase 3 data for its single-shot chikungunya vaccine candidate, VLA1553, have been published in The Lancet. Anticipated better-than-expected second quarter 2023 loss per share with the latest Zacks Consensus Estimate showing significant narrowing for the metric compared to the year-ago reported numbers raises optimism about the stock. The company is expected to release its second-quarter earnings on Aug 10, 2023.

This company is expected to post quarterly loss of $0.32 per share in its upcoming report, which represents a year-over-year change of +88.8%. Revenues are expected to be $45.58 million, down 40.1% 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 Valneva SE Sponsored ADR, 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 VALN 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 >>>>

Valneva SE Sponsored ADR is part of the Zacks Medical - Products industry. Baxter International BAX, another stock in the same industry, closed the last trading session 0.9% lower at $44.94. BAX has returned 6.5% in the past month.

For Baxter , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.60. This represents a change of -31% from what the company reported a year ago. Baxter currently has a Zacks Rank of #3 (Hold).

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