TG Therapeutics stock is the IBD Stock Of The Day as shares approach two potential entries on newfound profitability and booming sales.
The biotech company sells just one drug, a multiple sclerosis treatment called Briumvi. Briumvi gained Food and Drug Administration approval in December 2022. Since then, sales have grown markedly. In the second quarter, TG posted its first-ever profit — a surprise. Analysts expected a 2-cent loss and TG Therapeutics posted a 4-cent gain per share.
Evercore ISI analyst Michael DiFiore says TG's full-year guidance appears "easily achievable."
TG Therapeutics stock is working on a new base with a potential entry at 23.12. Savvy investors could also consider jumping in if shares top a high point at 22.15, achieved on Aug. 7.
TG Therapeutics Stock Flies On Surprise Profit
For the year, TG expects Briumvi to bring in $290 million to $300 million in sales. That's up $15 million, at the midpoint, from the company's earlier outlook.
To meet that, Briumvi would have to generate just $86 million in sales each quarter in the third and fourth quarters. Analysts surveyed by FactSet expect a respective $77.4 million and $95.6 million, which averages out to $86.5 million each quarter.
It's also important to note Briumvi sales have topped expectations in each of the three quarters since its launch. In the second quarter, sales came in at $72.8 million. Analysts called for a lower $65.5 million.
TG Therapeutics stock soared almost 20% on Aug. 6 after the company issued its June-quarter report. The stock rallied 5.4% to close at 22.08 on Friday.
The company is also expected to be solidly profitable in the future with second-quarter earnings beating expectations by 157%, according to DiFiore. Analysts project adjusted profit of 5 cents per share this year growing to $3.36 a share in 2028.
Highly Rated IBD 50 Stock
Notably, the biotech company just started its Phase 1 study of an under-the-skin shot version of Briumvi. This would make Briumvi easier to administer. Today, it must be given as two loading dose intravenous infusions. Then, patients receive infusions every six months.
TG Therapeutics is also testing treatments for B-cell disorders. These are conditions that affect the immune system.
TG Therapeutics stock has a strong IBD Digital Relative Strength Rating of 96 and a matching Composite Rating. The RS Rating is a 1-99 measure of a stock's 12-month performance, while the CR weighs a stock's fundamental and technical measures against all other stocks.
Shares also land on the Tech Leaders list and rank ninth on the IBD 50 list of elite growth stocks.
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