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BridgeBio Pharma (BBIO) Moves 9.7% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

BridgeBio Pharma BBIO shares ended the last trading session 9.7% higher at $14.90. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.4% gain over the past four weeks.

This surge in price came after Bloomberg reported that BridgeBio is attracting takeover interest from some large-cap pharmaceutical companies.

This rare disease drug developer is expected to post quarterly loss of $0.84 per share in its upcoming report, which represents a year-over-year change of +29.4%. Revenues are expected to be $7.17 million, up 324.4% 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.

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For BridgeBio Pharma, the consensus EPS estimate for the quarter has been revised 5.4% 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 BBIO 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 >>>>

BridgeBio Pharma belongs to the Zacks Medical - Generic Drugs industry. Another stock from the same industry, Homology Medicines FIXX, closed the last trading session 1.1% lower at $0.91. Over the past month, FIXX has returned -42.5%.

Homology Medicines' consensus EPS estimate for the upcoming report has changed -8.4% over the past month to -$0.55. Compared to the company's year-ago EPS, this represents a change of -175%. Homology Medicines currently boasts a Zacks Rank of #3 (Hold).

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BridgeBio Pharma, Inc. (BBIO) : Free Stock Analysis Report

Homology Medicines, Inc. (FIXX) : Free Stock Analysis Report

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Zacks Investment Research