NovoCure’s Stock Rises After FDA Approval of Optune Lua Device
Recent Performance and Upcoming Earnings
NovoCure (NVCR) shares surged by 10.7% to close at $17.78 during the last trading session, marked by significant trading volume. This uptick comes after the company experienced a 10.6% decline over the preceding four weeks.
The reason for the surge? The FDA recently granted approval for NovoCure’s Optune Lua device, designed for treating metastatic non-small cell lung cancer.
What to Expect in the Upcoming Earnings Report
Analysts predict that NovoCure will report a quarterly loss of $0.34 per share, reflecting a 26.1% increase compared to the same quarter last year. The projected revenue is expected to hit $144.01 million, which shows a 13.1% rise from the previous year.
While it’s essential to consider earnings and revenue growth, research indicates a notable relationship between earnings estimate revisions and short-term stock price movements. For NovoCure, the consensus EPS estimate has remained steady over the last month. This stability suggests that the stock’s price might not sustain its upward trend without a corresponding shift in earnings forecasts. Investors should monitor NVCR to determine if this recent price increase can develop into lasting momentum.
Currently, the stock has a Zacks Rank of #3 (Hold).
Industry Comparisons
NovoCure is part of the Zacks Medical – Biomedical and Genetics sector. In contrast, Lineage Cell (LCTX), another player in this field, saw its stock price drop by 3.1% to $0.83 by the end of the last trading session. Over the past month, LCTX has performed poorly with a return of -7.5%.
For Lineage Cell, the consensus EPS estimate for its upcoming report has remained unchanged at -$0.04, consistent with last year’s figure. Lineage Cell also holds a Zacks Rank of #3 (Hold).
Future Prospects in Semiconductors
In a related trend, Zacks recently spotlighted a leading semiconductor stock projected to have significant growth potential amidst the booming demand for technology like Artificial Intelligence and the Internet of Things. Global semiconductor manufacturing is expected to soar from $452 billion in 2021 to an estimated $803 billion by 2028.
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NovoCure Limited (NVCR): Free Stock Analysis Report
Lineage Cell Therapeutics, Inc. (LCTX): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
