3 Biotech Stocks Likely to Outpace Q2 Earnings Estimates

The Medical sector is concluding a robust Q2 2025 earnings season, with major biotech firms like Gilead, Amgen, Regeneron, and Biogen reporting strong results, beating estimates, and raising full-year guidance. Building on this momentum, the article highlights Zevra Therapeutics (ZVRA), Inovio Pharmaceuticals (INO), and Journey Medical (DERM) as three biotech companies poised for positive earnings surprises in their upcoming reports, supported by strong Earnings ESP figures, notably ZVRA's +58.04%, and recent operational successes. This indicates continued strength and potential near-term opportunities within the biotech sub-sector.

Analysis

The Medical sector is demonstrating robust health as the Q2 2025 earnings season concludes, with large-cap biotechnology firms setting a positive precedent. Industry leaders including Gilead Sciences, Amgen, and Biogen have surpassed consensus estimates and raised their full-year 2025 guidance. Notably, Regeneron achieved year-over-year revenue growth despite declining sales from its lead drug, Eylea, signaling portfolio resilience. Against this strong backdrop, the report identifies three smaller biotech companies poised for potential earnings outperformance based on a proprietary quantitative screen. Zevra Therapeutics (ZVRA) stands out with a significant +58.04% Earnings ESP, supported by the strong initial uptake of its newly FDA-approved drug Miplyffa, a strengthened cash position following a $150 million asset sale, and a 44.2% year-to-date stock increase. Inovio Pharmaceuticals (INO), a clinical-stage company, is highlighted for its +10.76% Earnings ESP and an imminent BLA submission for its lead candidate, INO-3107. Lastly, Journey Medical (DERM), a commercial-stage dermatology firm, shows a +14.29% Earnings ESP and a strong launch for its new product, Emrosi, complemented by a history of significant positive earnings surprises averaging 44.36%.

Key Decisions for Investors

• The broad-based strength and positive guidance from major biotech firms like Gilead and Amgen provide a constructive sentiment tailwind for the sector, suggesting investors should maintain a positive outlook on existing biotech holdings.
• For investors with higher risk tolerance, Zevra (ZVRA), Inovio (INO), and Journey Medical (DERM) represent potential short-term, event-driven opportunities ahead of their August 12 earnings reports, given their positive Earnings ESP figures and specific company catalysts.
• Zevra Therapeutics warrants particular attention due to its combination of an exceptionally high Earnings ESP (+58.04%), recent commercial success with Miplyffa, and a newly fortified balance sheet from a $150 million cash infusion.
• Investors considering Inovio Pharmaceuticals should monitor the progress of its planned rolling BLA submission for INO-3107, as FDA file acceptance by year-end 2025 is a critical upcoming catalyst for the clinical-stage company.