Strength Seen in Genmab (GMAB): Can Its 10.7% Jump Turn into More Strength?

Genmab A/S Sponsored ADR (GMAB) shares rallied 10.7% in the last trading session to close at $38.48. 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 3.4% gain over the past four weeks.

The stock rallied after Genmab, along with partner AbbVie, announced positive top-line data from the phase III EPCORE DLBCL-2 study, which showed epcoritamab in combination with R-CHOP demonstrated statistically significant improvement in progression-free survival in patients with newly diagnosed diffuse large B-cell lymphoma.

This company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -43.1%. Revenues are expected to be $1.18 billion, up 15.7% 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 Genmab, the consensus EPS estimate for the quarter has been revised 8.7% 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 GMAB 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 >>>>

Genmab belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Verastem (VSTM), closed the last trading session 3.9% higher at $8. Over the past month, VSTM has returned -6.1%.

For Verastem, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.44. This represents a change of +67.4% from what the company reported a year ago. Verastem currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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