ZIOPHARM Oncology (ZIOP) Stock: Explosive Growth Follows Strong Earnings

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ZIOPHARM Oncology Inc. (NASDAQ: ZIOP)

ZIOPHARM Oncology is having an incredible trading session in the market today, and for good reason. The company not only recently reported strong second quarter results, but Wells Fargo upgraded the stock as well. Today, we’ll talk about the earnings, the upgrade, how the stock reacted to the news, and what we can expect to see from ZIOP moving forward.

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ZIOP Reports Impressive Q2 Results

As mentioned above, one of the factors pushing ZIOPHARM Oncology skyward today is the fact that the company has released an incredibly strong Q2 report. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, ZIOP definitely did not disappoint. During the second quarter, analysts were expecting that the company would generate a loss of $0.11 per share. However, the company actually reported a second quarter loss of $0.10, $0.01 ahead of expectations.
  • Revenue – As if strong earnings wasn’t enough to excite investors, revenue also came in positive. During the second quarter, analysts expected that ZIOP would generate total revenue in the amount of $1.5 million. However, the company actually reported second quarter revenue at $1.7 million.

Another bit of strong news that came out today surrounding ZIOPHARM Oncology is the fact that the company’s stock was upgraded. In a note to investors, Wells Fargo made the decision to upgrade the stock’s rating from “Underperform” to “Market Perform”. The analyst cited the stock’s current valuation as the reason for the upgrade. Also, the Wells Fargo price target on ZIOP is $5 to $8, representing about a 50% upside potential on the high side.

How The Stock Reacted To The News

One of the first things that most people learn when they get started in investing is to watch the news. After all, the news generally moves the market – especially when that news has to do with earnings and analysts. In this particular case, ZIOP was the subject of both a strong earnings report and an analyst upgrade. So naturally, the stock is soaring in the market today. Currently (1:59), the stock is trading at $5.32 per share after a gain of $0.46 per share (9.49%) thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively bearish opinion of what we can expect to see from ZIOPHARM Oncology. While the company has released several bits of promising data with regard to their research, they are a clinical stage company with a lot to prove. Unfortunately, the company has been battered by a mix of poor economic conditions and overwhelmingly poor results in some areas. For example, the stock is currently working to recover from a death that happened following an injection of the company’s gene therapy. Shortly after the therapy was injected into the tumor, excessive bleeding in the skull occurred. Within 15 days, the patient died. Cause of death was an intracranial hemorrhage. While I would like to see ZIOP do well, there are a lot of areas where the company can use improvement.

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What Do You Think?

Where do you think ZIOP is headed moving forward? Join the discussion at TalkTRENDZ!

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