Deciphera Pharmaceuticals, Inc. (DCPH) Soars 10.3%: Is Further Upside Left in the Stock?

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By Amit


Deciphera Pharmaceuticals, Inc. (DCPH) shares soared 10.3% in the last trading session to close at $16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 10.4% loss over the past four weeks.

The soar in the stock price is attributable to the pipeline progress of Deciphera and the positive momentum built around it. Earlier this month, the company reported the completion of enrollment in its phase III MOTION study of vimseltinib in patients with tenosynovial giant cell tumor (TGCT) who are not amenable to surgery. Top-line data from the study is expected in the fourth quarter of 2023. The company also plans to initiate the pivotal phase III INSIGHT study evaluating its sole marketed drug, Qinlock (ripretinib) compared with sunitinib for treating patients with gastrointestinal stromal tumor (GIST) who were previously treated with Novartis’ Gleevec (imatinib) in the second half of 2023.

This company is expected to post quarterly loss of $0.59 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $35.46 million, up 21.3% 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 Deciphera Pharmaceuticals, Inc., the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DCPH 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 >>>>

Deciphera Pharmaceuticals, Inc. belongs to the Zacks Medical – Biomedical and Genetics industry. Another stock from the same industry, BioNTech SE Sponsored ADR (BNTX), closed the last trading session 1.8% higher at $129.77. Over the past month, BNTX has returned -9.9%.

For BioNTech SE Sponsored ADR, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $8.93. This represents a change of -35.9% from what the company reported a year ago. BioNTech SE Sponsored ADR currently has a Zacks Rank of #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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