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3 Small Cap Pharma Stocks Set To Surge Following Q1 Earnings

By Zacks Investment ResearchStock MarketsApr 01, 2015 12:12AM ET
www.investing.com/analysis/3-small-cap-pharma-stocks-set-to-surge-following-q1-earnings-246915
3 Small Cap Pharma Stocks Set To Surge Following Q1 Earnings
By Zacks Investment Research   |  Apr 01, 2015 12:12AM ET
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CRMD
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History suggests that the biomed space is a good place to invest in, as it has flourished over the last few years. The industry holds a Zacks Industry Rank of 60/265, placing it among the top 23% of industries to invest in. The last few years have been really kind to health care investors in general. In fact, the iShares US Healthcare (NYSE:IYH) is up 28.7% over the last 52 weeks.

Within the biomed industry are biopharmaceutical stocks. The iShares DJSU Pharmaceutical Index (NYSE:IHE) is up 39.38% over the last 365 days. Notice that this particular space within health care has outperformed the sector in general by about 37%. Indeed, up and coming pharmaceutical companies make for an intriguing investment.

Thus, we have outlined three small-cap biopharmaceutical stocks which are likely to post beats on Q1 earnings when they report. The stats along with high “buy” ranks suggest that they are dependable investments in the short term. We choose these companies based on criterion of growth, estimate revisions, and earnings history.

Stemline Therapeutics Inc (NASDAQ:STML)

Stemline Therapeutics is a biopharmaceutical company that develops oncology therapeutics targeting cancer stem cells. The company holds a Zacks Rank #2 (Buy). This favorable rank along with a positive Earnings Expected Surprise Prediction (ESP) of 8.89% makes STML a likely candidate to beat on our Earnings consensus when it reports its earnings on 5/21/15.

It’s worth noting that the company has a year over year earnings growth estimate of 35.71% from this quarter. Our earnings consensus has seen some movement over the last 30 days. About a month ago, our EPS consensus called for earnings of -$0.51 for the quarter. Since then, our consensus has been revised, now calling for earnings of -$0.45 for the quarter. Stemline has beaten on our EPS consensus estimate in each of the last four quarters, and by an average of 13.84%.

CorMedix Inc (AMEX:CRMD)

CorMedix is a development-stage pharmaceutical company that is developing and marketing its drugs for cardiac and renal complications. The stock is a Zacks Rank #1 (Strong Buy). The earnings growth estimate for next year is 64.1%. The year over year earnings growth estimate from this quarter is 37.5%.

There have been 3 positive analyst estimate revisions over the last 60 days. In that same time frame, there have been 0 negative revisions. 7 days ago, our consensus estimate called for EPS of -$0.15 for this quarter. Since then, the EPS consensus has been revised, currently calling for Earnings of -$0.10 per share. The company beat our earnings consensus by 25% last quarter. CorMedix reports its earnings on 5/21/15.

Horizon Pharma Inc (NASDAQ:HZNP)

Horizon is a specialty biopharmaceutical company engaged in developing and marketing products for unmet medical needs. Products treat arthritis, inflammation, and orphan diseases. Horizon has a Zacks Rank #1 (Strong Buy). The nice rank along with a positive Earnings ESP of 9.09% makes HZNP a likely candidate to beat on our consensus estimate when it posts its earnings on 5/8/15.

The company has a nice debt/equity of 0.55. Horizon also has a trailing twelve month ROE of 34.13%. 30 days ago, our consensus EPS for this quarter was $0.19. However, the consensus has since moved up, currently calling for EPS of $0.22 for this quarter.

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3 Small Cap Pharma Stocks Set To Surge Following Q1 Earnings
 

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3 Small Cap Pharma Stocks Set To Surge Following Q1 Earnings

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