For immediate release
Chicago, IL – May 13, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Angion Biomedica ANGN, Applied Therapeutics APLT, Bolt Biotherapeutics BOLT, Ikena Oncology IKNA and Landos Biopharma LABP.
Here are highlights from Thursday’s analyst blog:
5 biotech stocks set to beat first-quarter earnings estimates
It’s been a mixed earnings season so far for the drug and biotechnology sector. While several big pharma/biotech companies beat estimates on earnings and revenue, others like Pfizer missed both.
Many companies beat earnings estimates while missing the same for sales or vice versa. Most companies maintained their previously released financial outlook for 2022. Some smaller biotech companies have yet to release a report.
According to the Zacks classification, the pharmaceutical/biotech industry falls under the broader medical sector, which includes pharmaceutical/biotech companies as well as medical device companies.
According to the Earnings Trend Report, as of May 4, 77.2% of companies in the medical sector, constituting nearly 87.8% of the sector’s market capitalization, reported profits. While 84.1% of companies exceeded profit estimates, 75% did the same for revenue. Profits rose 18.9% year over year on the back of revenue up 17.3%.
Overall, first-quarter medical profits are expected to rise 16.3% on a 14.8% sales increase.
Focus on winners
Here we have highlighted five biotech companies – Angion Biomedica, Applied therapy, Biotherapeutic Bolt, Ikena Oncologyand Landos Biopharma – which should deliver a beat in their upcoming quarterly results.
Earnings ESP is our proprietary methodology for determining which stocks have the best chance of generating an earnings surprise. The PSE of earnings shows the percentage difference between the most accurate estimate and the Zacks consensus estimate.
According to the Zacks model, the combination of a positive earnings ESP and a Zacks rank of #1 (strong buy), 2 (buy), or 3 (hold) increases the chance of an earnings beat. The selection can be made using the Zacks Stock Screener.
Our research shows that for stocks with this combination, the probability of an earnings surprise can be as high as 70%. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
5 pharma/biotech stocks that fit the criteria
This clinical-stage biotech has an EPS on earnings of +26.44% and a Zacks Rank of 1. You can see the full list of today’s Zacks Rank #1 stocks here
Zacks consensus estimate for the first quarter is pegged to a loss of 44 cents per share. Angion Biomedica is expected to publish its results next week.
Angion Biomedica has exceeded estimates in three of the past four quarters while missing one, with the average surprise being 47.51%.
Also a clinical-stage biotechnology, Applied Therapeutics manufactures novel drug candidates against validated molecular targets in indications of unmet medical need. APLT has an ESP earnings of +21.95% and a Zacks rating of 2. The Zacks consensus for the first quarter is pegged to a loss of 82 cents per share.
Applied Therapeutics beat estimates in two of the last four quarters while missing in one and delivering results in line in one. The company’s average earnings surprise is 2.58%. The company is expected to release its results this month.
Redwood City, Calif.-based immuno-oncology biotech Bolt Biotherapeutics has a +2.13% gain ESP and a Zacks rank of #3. Zacks consensus estimate for the first quarter is pegged to a loss of 71 cents per share.
Bolt Biotherapeutics has missed estimates in three of the last four quarters while delivering results in line in one, with the average negative earnings surprise of 28.35%.
Boston-based cancer biotech Ikena Oncology has an ESP of +4.14% and a Zacks ranking of 2. The Zacks consensus estimate for the first quarter is pegged to a loss of 42 cents per share.
Ikena Oncology beat earnings estimates in two of the past four quarters while missing the other two, with the average downside surprise being 33.37%.
Landos Biopharma is a clinical biotechnology company focused on the development of new oral therapies for autoimmune diseases. The company has an ESP on earnings of +4.70% and a Zacks rank of No. 2. Zacks consensus estimate for the first quarter is pegged to a loss of 37 cents per share.
Landos Biopharma has exceeded estimates in two of the last four quarters while missing in one and delivering results in line in one. The company’s average earnings surprise is 34.91%.
Stay on top of upcoming earnings announcements with Zacks Earnings Calendar.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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