Argenx is Wednesday's pick for Investor's Business Daily's IBD 50 Growth Stocks To Watch as the maker of autoimmune disease treatments recovers from a recent sell-off. Argenx stock is climbing off April lows in a base with earnings around the corner.
The IBD 50 and IBD Leaderboard stock is showing dominance with its more than 2% gain Wednesday as the market posts large losses. The biotech stock is on pace for five straight days of increases.
Argenx is a global immunology company that develops treatments for people with rare severe autoimmune diseases, including neuromuscular disorders. The Netherlands-based company makes intravenous treatment Vyvgart and under-the-skin shot Vyvgart Hytrulo. It has several products in its pipeline, including one for a blood clotting disease.
On Monday, Argenx announced it received a positive opinion by a committee of the European Medicines Agency for its Vyvgart product. The treatment is by subcutaneous injection for adult patients with a chronic inflammatory nerve disorder that causes weakness and numbness.
The news follows an April 10 announcement that the Food and Drug Administration cleared its drug, Vyvgart Hytrulo, for at-home treatment. The announcement caught the eye of a Leerink Partners analyst Thomas Smith, calling the news a "best-case scenario" for Argenx, according to a report.
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Argenx Stock Shows Constructive Action
Argenx stock is climbing off the low of an early-stage consolidation pattern with a 678.21 buy point, according to MarketSurge pattern recognition.
Shares have been on the rise since it gapped up 6.4% on the April 11, following the FDA approval news.
The biotech stock continues to make headway above its 50-day moving average while its 21-day exponential moving average is rising, both positive signs for the stock.
Moreover, its relative strength line reached a 52-week high, as shown by the blue dot on its chart.
Its IBD Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks. Although, volume has been trending lighter-than-average over the last three weeks.
Biotech's Sales Climb
Unlike many biotech companies, Argenx is profitable.
First-quarter estimates call for $2.42 earnings-per-share vs. a loss of $1.04 per-share one year ago. Full-year 2025 forecasts show earnings at $12.30 a share, dipping 4% from 2024. But that was the year it turned profitable with extraordinary earnings.
Sales growth has averaged 77% over the last four quarters, which followed multiple quarters of triple-digit increases.
Quarterly forecasts show continued robust revenue growth. First-quarter projections call for 91% growth then slow to 32% over the next four quarters.
The autoimmune disease treatment company historically reports its first-quarter earnings results in early May. It announced it will host its annual shareholder meeting on May 27.
Finally, Argenx stock holds a 95 IBD Composite Rating and a 92 Relative Strength Rating.
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