In the latest trading session, Sorrento Therapeutics (SRNE) closed at $11.29, marking a +0.98% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.88%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 1.39%.
Heading into today, shares of the biopharmaceutical company had gained 81.12% over the past month, outpacing the Medical sector’s gain of 3.5% and the S&P 500’s gain of 3.54% in that time.
SRNE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.21, up 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.32 million, up 78.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $2.05 billion, which would represent changes of +333.96% and +6411.95%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SRNE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SRNE is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note SRNE’s current valuation metrics, including its Forward P/E ratio of 2.25. This represents a discount compared to its industry’s average Forward P/E of 27.01.
The Medical – Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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