Wednesday's IBD 50 Stocks To Watch pick, biotech leader TG Therapeutics, is in a buy area as it clears a resistance level. That makes TG Therapeutics stock one of the best to watch right now.
TG Therapeutics markets Briumvi as an easier treatment option for multiple sclerosis. After initially receiving two loading doses, patients switch to Briumvi's maintenance schedule. That requires a one-hour infusion every six months. Other MS drugs require more frequent infusions.
On May 1, TG Therapeutics reported a first-quarter loss of 7 cents per share, much narrower than the year-ago loss of 28 cents per share. Revenue soared 714% to $63.5 million.
"We were extremely pleased with the strong sales of just over $50 million in Briumvi U.S. net revenue for the first quarter of 2024, which was ahead of our guidance. We believe this strong momentum will continue to build throughout 2024 and are pleased to update our yearly guidance to $270 to $290 million in Briumvi U.S. net revenue in 2024," said Chief Executive Michael Weiss.
In 2023, the company earned 9 cents per share — making an annual profit for the first time. Analysts see another profitable year in 2024 (EPS of 6 cents is the consensus estimate) and in 2025, with estimated earnings of 67 cents per share, according to FactSet.
That path to further profitability places TP Therapeutics as one of stocks to watch.
Current-quarter estimates are for a loss of 3 cents per share, narrower than the year-ago period's loss of 34 cents, according to IBD MarketSurge.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
TG Therapeutics Clears Resistance
TG Therapeutics stock is building a deep base that has a 22.67 buy point. However, shares are clearing resistance around 19, which places them in a buy area for more aggressive investors. The stock dropped 1.5% early Wednesday to 18.90.
With IBD's recommended equity exposure range at 80%-100%, investors have the flexibility to buy breakouts among top stocks.
TG Therapeutics stock shows a solid 93 out of 99 IBD Composite Rating, according to IBD Stock Checkup, even though the company is just turning profitable. Strong price action since October 2023 is helping offset weak EPS performance.
The relative strength line is at short-term highs following this month's price gains. But the RS line remains pretty far from its January highs. That makes it a key indicator to watch right now. The RS line measures a stock's price performance vs. the S&P 500 and provides insight into a stock's market leadership.
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Best Stocks To Watch
Three IBD 50 Growth Stocks To Watch picks from earlier this year are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Hilton | 215.79 | Flat base | |
| Booz Allen Hamilton | 150.59 | Flat base | |
| Palantir Technologies | 26.57 | Cup with handle |
Source: IBD Data As Of June 26, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
