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