Cancer treatment company BeiGene renamed itself as BeOne Medicines soon after the company achieved a sales milestone. Now, the biotech company is Thursday's selection for IBD 50 Stocks To Watch.
With significant operations in the U.S. and China, BeOne changed its stock ticker from BGNE to ONC on Jan. 2. Positive clinical trial results have lifted shares of the cancer stock amid a four-day winning streak this week. The relative strength line is beginning to trend higher as shares rise above the 50-day moving average within the base.
The biotech stock is carving a consolidation pattern with a buy point of 287.88. This is an early-stage pattern than can net higher gains. As of Wednesday's closing price, the stock had surged 40% year to date, trouncing the benchmark S&P 500, which has just recovered from steep losses for the year and holds a 1.5% gain.
BeOne treats cancers. While it runs several clinical trials, its commercial product Brukinsa has been approved by the Food and Drug Administration for treating certain types of blood cancer. Its first "in-human" clinical trial for treating solid tumors showed "promising" results, according to a company news release issued on June 2.
The biopharma company achieved $1 billion in revenue for the first time in its September-ended quarter. More recently, it achieved a more significant milestone when it turned profitable during the first quarter that ended in March.
Sales grew 49% to $1.1 billion while earnings of $1.22 per share reversed earlier losses. Analysts polled by FactSet see that trend continuing with triple-digit growth in earnings for the next three quarters.
For the current quarter, estimates call for the company to earn 21 cents a share on $1.2 billion in sales.
Biotech Stock Shows Strong Institutional Demand
Mutual funds own 34% of outstanding shares with more funds buying shares over the last 13 weeks. That has given BeOne stock an Accumulation/Distribution Rating of B. Its Relative Strength Rating of 90 also shows that BeOne has outperformed most of the stocks in the Investor's Business Daily database.
The Up/Down Volume Ratio of 1.1 indicates demand for the cancer stock has been strong over the past 50 trading days. In the IBD mutual fund index, the T Rowe Price New Horizons Fund (PRNHX) and the Fidelity Contrafund (FCNTX) also hold shares of BeOne stock.
BeOne stock's Composite Rating sits at 89 while the EPS Rating lags at 68. That could change if the company continues to report profits. For the full year, analysts see profits rising 131% to $1.58 in earnings per share. In 2026, they see profits surging 256% with earnings of $5.62 per share, according to IBD MarketSurge.
The biomed group ranks 45th among IBD's 197 industry groups, according to IBD Stock Checkup. Further, American Depository Receipts of BeOne trade on the Nasdaq. The stock also lists on the Hong Kong exchange.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
