Incyte (INCY) is scoring a new high in Friday's stock market action. Shares are at levels last seen in February 2023. The stock is also in a buy zone after clearing a buy point of 83.95. The relative strength line has risen sharply amid a post-earnings rally in August.
The biopharmaceutical company has been posting profits over the past four quarters, while sales have grown, ranging between 9% and 24% over the past eight quarters.
Second-quarter results lifted the stock on July 29. The biotech company reported earnings of $1.57 per share, swinging from a loss of $1.82 per share in the year-earlier quarter. Revenue grew 16% to $1.2 billion.
Analysts are bullish on Incyte's profitability in 2025 and 2026. They estimate earnings will grow 447% to $5.91 per share in 2025, and by 20% in 2026 to $7.10 per share.
Incyte develops treatments for certain cancers and skin diseases. The stock ranks first in IBD's biotech group, according to IBD Stock Checkup, and holds a perfect Composite Rating of 99.
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Mutual funds have been adding the stock to their portfolios over the recent 13 weeks, giving the biotech stock an Accumulation/Distribution Rating of B+.
Mutual funds own 79% of outstanding shares, and more funds have been net buyers over the past three quarters, going by IBD MarketSurge data.
The up/down volume ratio of 1.4 also shows strong demand for the stock in the past 50 trading days.
In other moves, China-based Lidar maker Hesai (HSAI) surged to highs last seen when shares popped on their initial trading day on Feb. 9, 2023.
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Hesai stock shot past a handle-like entry at 24.64 on Friday. Second-quarter earnings of 4 cents per share swung from a loss of 5 cents in the prior quarter while sales rose 56% to $98.6 million. Hesai holds an ideal Relative Strength Rating of 99 while its Composite Rating is an also stellar 98.
Mutual funds own 36% of outstanding shares. More funds have added the stock to their holdings over the past four quarters. Analysts see earnings soaring 2,212% in 2025 to 32 cents per share and 117% in 2026 to 69 cents.
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