With triple-digit profit growth seen on its horizon, Argenx is Wednesday's selection for IBD 50 Stocks To Watch.
Shares currently are testing support at their 50-day moving average as Argenx sits within an early-stage base ahead of fourth-quarter results on Feb. 27. The flat base offers a buy point of 678.21 which is also the stock's all-time high.
Argenx stock gapped up after third-quarter results on Oct. 31. Sales increased 73% to $588.9 million while the biotech company also posted its second continuous quarter of profitability with earnings of $1.39 per share.
Triple-Digit Gains For 2024 and 2025
Analysts polled by FactSet estimate fourth-quarter sales of $696.6 million or a 67% growth and earnings of $1.81 per share after $1.68 per share in losses in the prior year.
Profits are expected to keep surging, as the company is expected to post triple-digit gains for the next four quarters. Annual estimates call for earnings growth of 147% in 2024 and 348% in 2025.
Argenx provides treatments for autoimmune disorders. Its approved drugs treat conditions that affect voluntary muscles. The company also runs clinical trials for new treatments.
The biomed stock holds a Composite Rating of 86 while profitability in the recent two quarters has helped it score an EPS Rating of 81. However, the stock's strong price performance over the past 52 weeks has landed it among the top 8% of stocks in the Investor's Business Daily database.
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Argenx Stock Soars To All-Time High With 3,659% Gain
The Dutch company went public on May 18, 2017, listing shares on the Nasdaq at an initial offering price of 17. As of Tuesday's closing price, shares had gained 3,659%.
Mutual funds own 36% of outstanding shares. More funds have been net buyers of Argenx stock over the past two quarters. In Investor's Business Daily's mutual fund index, the Artisan Mid Cap Fund (ARTMX) and the T. Rowe Price New Horizons Fund (PRNHX) hold shares of Argenx stock.
Among exchange traded funds, the First Trust Arca Biotechnology Index Fund holds shares of Argenx.
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