Why Exelixis (EXEL) is a Top Momentum Stock for the Long-Term

Exelixis (EXEL), an oncology-focused biotech firm, is highlighted as a compelling momentum stock, holding a Zacks Rank #2 (Buy) and a VGM Score of A. The stock has risen 15.8% in the last four weeks, driven by nine upward earnings estimate revisions for fiscal year 2025, increasing the consensus estimate to $2.57 per share and demonstrating a 48.6% average earnings surprise; momentum investors may find EXEL attractive given its 'A' Momentum Style Score.

Analysis

Exelixis (EXEL), an Alameda, CA-based oncology-focused biotechnology company, is positioned as a notable momentum stock according to Zacks Investment Research. The company currently holds a Zacks Rank #2 (Buy), complemented by a VGM Score of 'A' and a Momentum Style Score of 'A', indicating strong overall investment appeal and specific strength in price momentum. Supporting this, EXEL's shares have appreciated 15.8% over the past four weeks. A key driver for this positive assessment is the trend in earnings estimate revisions; nine analysts have revised their fiscal 2025 earnings estimates upwards for EXEL in the last 60 days. This has led to an increase in the Zacks Consensus Estimate for fiscal 2025 by $0.26, now standing at $2.57 per share. Furthermore, Exelixis has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of 48.6%. The combination of a strong Zacks Rank, high Style Scores, positive earnings estimate revisions, and recent share price performance underscores its current attractiveness within the Zacks framework.

Key Decisions for Investors

• Investors, particularly those focusing on momentum strategies, should consider EXEL due to its Zacks Rank #2 (Buy), 'A' rated Momentum and VGM Style Scores, and recent 15.8% stock price increase.
• The upward trend in earnings estimate revisions, with nine analysts increasing fiscal 2025 forecasts and the consensus estimate rising to $2.57, warrants close monitoring as a key indicator of continued positive outlook.
• Given the Zacks methodology, the combination of a #1 or #2 Rank with Style Scores of 'A' or 'B', as seen with EXEL, is highlighted as a strong signal for potential outperformance and should be a factor in stock selection.