Adma Biologics (ADMA) Surges 10.2%: Is This an Indication of Further Gains?

Adma Biologics (ADMA Quick QuoteADMA – Free Report) shares soared 10.2% in the last trading session to close at $20.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 15.7% gain over the past four weeks.

The sudden soaring of the stock price can be attributed to a positive investor mindset regarding the continued sales growth of ADMA Biologics’ three FDA-approved products, namely – Bivigam (to treat primary humoral immunodeficiency), Asceniv (to treat primary immunodeficiency disease or PIDD) and Nabi-HB (to treat and provide enhanced immunity against the hepatitis B virus). In 2024, the company recorded total revenues of $426.5 million entirely from product sales, representing an increase of 65% on a year-over-year basis.

This infectious disease drug developer is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $119.1 million, up 45.5% 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 Adma Biologics, the consensus EPS estimate for the quarter has been revised 6.7% 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 ADMA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Adma Biologics is part of the Zacks Medical – Biomedical and Genetics industry. Wave Life Sciences (WVE Quick QuoteWVE – Free Report) , another stock in the same industry, closed the last trading session 2.6% higher at $10.04. WVE has returned -11.2% in the past month.

For Wave Life Sciences, the consensus EPS estimate for the upcoming report has changed +2% over the past month to -$0.26. This represents a change of -8.3% from what the company reported a year ago. Wave Life Sciences currently has a Zacks Rank of #3 (Hold).