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Axsome (AXSM) Moves 11.5% Higher: Will This Strength Last?

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Axsome Therapeutics (AXSM - Free Report) shares ended the last trading session 11.5% higher at $89.27. 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 11.2% loss over the past four weeks.

The stock rallied after the company announced robust preliminary net product revenues for its marketed drugs, Auvelity and Sunosi, for the fourth quarter and full year 2024. Auvelity sales in the fourth quarter of 2024 are expected to be around $92.6 million, bringing the full-year number to $291.4 million. Sunosi net product revenues are expected to be around $25.7 million and $93.8 million for the fourth quarter and full year of 2024, respectively.

This biopharmaceutical company is expected to post quarterly loss of $0.97 per share in its upcoming report, which represents a year-over-year change of -32.9%. Revenues are expected to be $115.68 million, up 61.7% 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.

For Axsome, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AXSM 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 >>>>

Axsome belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Mirum Pharmaceuticals, Inc. (MIRM - Free Report) , closed the last trading session 6.5% higher at $44. Over the past month, MIRM has returned -2.6%.

Mirum Pharmaceuticals' consensus EPS estimate for the upcoming report has changed +24.7% over the past month to -$0.29. Compared to the company's year-ago EPS, this represents a change of +56.1%. Mirum Pharmaceuticals currently boasts a Zacks Rank of #3 (Hold).


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