Shares of Poseida Therapeutics, Inc. (PSTX) have been strong performers lately, with the stock up 196% over the past month. The stock hit a new 52-week high of $9.58 in the previous session. Poseida Therapeutics, Inc. has gained 182.7% since the start of the year compared to the -1.7% move for the Zacks Medical sector and the -8.8% return for the Zacks Medical – Biomedical and Genetics industry.
The stock has a great record of positive earnings surprises, as it hasn’t missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2024, Poseida Therapeutics reported EPS of $0.21 versus consensus estimate of $-0.42.
For the current fiscal year, Poseida Therapeutics is expected to post earnings of -$1.03 per share on $148.38 million in revenues. This represents a 24.82% change in EPS on a 129.32% change in revenues. For the next fiscal year, the company is expected to earn -$1.80 per share on $60 million in revenues. This represents a year-over-year change of -75.56% and -59.56%, respectively.
Poseida Therapeutics may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Poseida Therapeutics has a Value Score of D. The stock’s Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
We also need to consider the stock’s Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Poseida Therapeutics currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Poseida Therapeutics meets the list of requirements. Thus, it seems as though Poseida Therapeutics shares could still be poised for more gains ahead.
Shares of PSTX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MiMedx Group, Inc (MDXG). MDXG has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. MiMedx Group, Inc beat our consensus estimate by 40%, and for the current fiscal year, MDXG is expected to post earnings of $0.30 per share on revenue of $342.97 million.
Shares of MiMedx Group, Inc have gained 2.3% over the past month, and currently trade at a forward P/E of 32X and a P/CF of 50.2X.
The Medical – Biomedical and Genetics industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PSTX and MDXG, even beyond their own solid fundamental situation.
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