All posts from Zacks
Zacks in Our Research. Your Success.,

3 Buy-Ranked Healthcare Stocks Building Momentum Now

Earnings season is well underway, and there are many companies whose positive earnings results will lead their share prices to surge higher.  Success can be attained by buying shares in companies that are positioned to surpass earnings expectations. 

This isn’t easy to do under normal circumstances.  However, our Zacks Rank does a great job at finding candidates that are likely to beat our earnings consensus estimate.  Today, we’ve found three healthcare companies that appear to be building momentum as they head into their earnings reports. 

Each of these companies has seen double digit share price gains in the last month, but I’m talking about a different kind of momentum that these companies have been building.  These healthcare corporations have seen earnings estimates trend higher over the last 30 days.  As our EPS consensus trends higher, so does the possibility of a stock surpassing the broader expectations of the market. 

Innoviva Inc-INVA

Innoviva develops, commercializes, and manages biopharmaceuticals.  It is also a Zacks Rank #2 (Buy).  The company has a portfolio of respiratory assets partnered with GlaxoSmithKline GSK.  In the last month, Innoviva shares have surged 16.57% higher.  The company doles out a generous 3.64% dividend to investors.

This year, Innoviva’s earnings and sales are projected to grow by 466.25% and 138.53% respectively.  Analyst estimates have been trending higher over the last 90 days, and this has lead to our consensus rising from $0.04 three months ago, to a current consensus estimate of $0.09. 

The company beat our earnings expectations by 300% last quarter.  Our fiscal year EPS estimate has seen a big improvement over the last 7 days.  One week ago, that consensus estimated earnings of $0.49 per share for the year.  Now, our consensus estimates EPS of $0.59.  Innoviva reports its earnings after the closing bell on the 28th of April.

Argos Therapeutics Inc-ARGS

Argos Therapeutics is a biopharmaceutical company that focuses on the development of immunotherapies to treat cancer and infectious diseases.  Argos is a Zacks Rank #2 (Buy), and it has clinical stage programs in phase 3 (metastatic renal cell carcinoma), phase 2b (HIV), and phase 1a (systemic lupus erythematosus).  The company sees more share price fluctuation than your average stock, as it has a beta of 2.21.

Argos’ earnings are projected to grow by 42.25%.  Its sales are also expected to increase by 227.95% this year.  Our quarterly consensus estimate has increased significantly over the last 30 days.  A month ago, our EPS consensus for this quarter estimated earnings of -$0.72 per share.  Since then, the consensus has climbed and it now estimates EPS of -$0.56.  In the last 30 days, our fiscal year EPS consensus has gone from -$2.87 to -$2.12.  Argos is expected to release its earnings in mid-May.

Vitae Pharmaceuticals Inc-VTAE

Vitae Pharmaceuticals is a clinical stage biotechnology company.  It creates small molecule drugs for diseases.  It engages in developing drugs to treat diabetes, Alzheimer’s, auto immune disorders, atopic dermatitis, and acute coronary syndrome. 

The company’s shares have gained 32.67% in the last month.  This surge stems from news that the company saw success in a clinical trial for the company’s VTP-43742.  It is believed that VTP-43742 has the potential to be used in the treatment of multiple diseases orally.   

Vitae has been seeing optimism from analysts in the form of positive earnings estimate revisions.  In the last 60 days, four analysts have revised their EPS estimates upwards for this quarter.  This has helped in bringing our EPS consensus estimate from -$0.57 thirty days ago, to a current quarterly consensus estimate of -$0.50.  In this same time frame, our EPS consensus estimate for the current year has gone from -$2.18 to -$1.90.

The Zacks Rank is a truly marvelous trading tool.  Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years!  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
ARGOS THERAPEUT (ARGS): Free Stock Analysis Report
VITAE PHARM INC (VTAE): Free Stock Analysis Report
INNOVIVA INC (INVA): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research