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Ligand (LGND) Moves 4.5% Higher: Will This Strength Last?

Ligand (LGND) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the...

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This story originally appeared on Zacks

Ligand Pharmaceuticals (LGND) shares rallied 4.5% in the last trading session to close at $146.03. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13% loss over the past four weeks.

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Ligand's drug-developing technologies have significant potential to drive the company's growth. The prospects of these technologies are driving Ligand's share price.

This drugmaker is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of -14.8%. Revenues are expected to be $62.7 million, down 10.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Ligand, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LGND 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 >>>>



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