Biotech Jumps and Slumps: ISIS Pharmaceuticals, Inc., Nektar Therapeutics, Curis, Inc.
It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains. Many times, stocks are off investors’ radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high risk tolerance.
One way to find these under-appreciated stocks is by looking at companies that haven’t seen their share prices move higher lately, but have observed analysts raising earnings estimates for their stock. This trend could signal that investors haven’t quite embraced the rising estimate story yet, but that the potential for a big move higher is definitely there.One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS). This med biomed/gene stock has actually seen loss estimates narrowing over the past month for the current fiscal year by about 30%. But that is not yet reflected in its price, as the stock lost 11.7% over the same time frame.
You should not be concerned about the price remaining muted going forward. This year’s expected earnings growth over the prior year is 21.2%, which should ultimately translate into price appreciation.
And if this isn’t enough, ISIS currently carries a Zacks Rank #2 (Buy) which further underscores the potential for its outperformance.
So if you are looking for a stock flying under-the-radar that is well-equipped to bounce down the road, make sure to consider Isis Pharmaceuticals. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for ISIS and that now might be an interesting buying opportunity.
Nektar Therapeutics (NASDAQ:NKTR) saw a big move last session, as the company’s shares fell by over 6% on Friday. The move came on pretty good volume too with far more shares changing hands than in a normal session. This reverses the recent trend for NKTR as the stock is now up about 16% since Jun 15.The biopharmaceutical company has seen a flat track record when it comes to current year estimate revisions over the past few weeks and the consensus for earnings hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.
NKTR currently has a Zacks Rank #3 (Hold) while its Earnings ESP is 0.00%.
Curis, Inc. (NASDAQ:CRIS) was a big mover last session, as its shares rose almost 6% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. Friday’s rally reverses the downtrend for the company since Jun 22, as the stock is now down over 2%.
Over the last 7 days, the company witnessed a mixed record of one positive and one negative estimate revision while the Zacks Consensus Estimate moved lower, signaling trouble down the road. So make sure to keep an eye on this stock going forward to see if Friday’s move higher lasts.Curis currently has a Zacks Rank #3 (Hold) while its Earnings ESP is positive.
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