Arcutis Biotherapeutics stock is inching higher in a base after the biotech has been trending sideways. This IBD 50 Growth Stocks To Watch pick for Thursday has seen growing demand for its centerpiece skin disorder drug.
Further, the biotech company has shown an improving bottom line, with expected profitability on the horizon.
Arcutis Biotherapeutics develops dermatology treatments for unmet needs of immune-related skin diseases and conditions.
Its main Food and Drug Administration approved products are Zoryve foam and cream. Both are used topically to treat forms of psoriasis and dermatitis. First-quarter sales of Zoryve increased 196% over the prior year.
The company boasts Zoryve is the most prescribed branded nonsteroidal topical treatment across three major inflammatory skin conditions. Also, its coverage by third-party pharmacy administrators and Medicaid continues to expand.
In March 2025, Health Canada — a department of the Canadian government — approved its Zoryve cream for the treatment a type of dermatitis in individuals 6 years of age and older. Arcutis began selling the product in Canada in April.
The IBD 50 name obtained two new U.S. patents in the first quarter related to roflumilast, the active ingredient in Zoryve. The biotech company has several treatments in the pipeline for eczema, vitiligo and a hair follicle disorder.
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Arcutis Stock Gears Up For Next Move
Arcutis stock is in a second-stage consolidation with a 17.75 buy point, according to MarketSurge pattern recognition. from Investor's Business Daily.
The base formed after a breakout from a double-bottom base reversed sharply in late March. Its volume has been mostly lighter than average within the 17-week long base.
Shares are back above their 10-week moving average after hugging the line for several weeks. Its IBD Relative Strength Rating climbed to 88 from 76 one week ago, with a best-possible score standing at 99. The biotech stock also holds an 84 Composite Rating.
Also, management appears to have conviction in the biotech stock, as it controls 9% of shares.
Analysts See Profits On The Horizon
On May 6, Arcutis reported first-quarter results showed loss of 20 cents a share, which slightly beat estimates. Its sales grew 33%, also topping views. The majority of the revenue came from sales of Zoryve, while a good portion of revenue came from other sources a year ago.
The biotech's revenue continues to ramp up. Analyst estimates call for a hearty 138% jump in the second quarter followed by 81% in the third quarter, before slowing to the upper 20% range.
Concurrently, the company's losses have dwindled. Full-year 2025 forecasts show a loss of 55 cents per share, with the company turning a profit of 15 cents per share in 2026.
Arcutis historically reports its second-quarter results around mid August.
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