Arcutis Biotherapeutics, Inc. (ARQT) Soars to 52-Week High, Time to Cash Out?

A strong stock as of late has been Arcutis Biotherapeutics, Inc. (ARQT). Shares have been marching higher, with the stock up 40.8% over the past month. The stock hit a new 52-week high of $28.96 in the previous session. Arcutis Biotherapeutics has gained 100.2% since the start of the year compared to the 4.8% move for the Zacks Medical sector and the 15.8% return for the Zacks Medical - Biomedical and Genetics industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 28, 2025, Arcutis Biotherapeutics reported EPS of $0.06 versus consensus estimate of -$0.1.For the current fiscal year, Arcutis Biotherapeutics is expected to post earnings of -$0.24 per share on $360.24 in revenues. This represents a 79.31% change in EPS on a 83.29% change in revenues. For the next fiscal year, the company is expected to earn $0.41 per share on $470.02 in revenues. This represents a year-over-year change of 273.61% and 30.47%, respectively.Valuation MetricsThough Arcutis Biotherapeutics has recently hit a 52-week high, what is next for Arcutis Biotherapeutics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Arcutis Biotherapeutics has a Value Score of D. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Arcutis Biotherapeutics currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Arcutis Biotherapeutics passes the test. Thus, it seems as though Arcutis Biotherapeutics shares could still be poised for more gains ahead.How Does ARQT Stack Up to the Competition?Shares of ARQT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Pharming Group N.V. Sponsored ADR (PHAR). PHAR has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Pharming Group N.V. Sponsored ADR beat our consensus estimate by 100.00%, and for the current fiscal year, PHAR is expected to post earnings of $0.64 per share on revenue of $371.65 million.Shares of Pharming Group N.V. Sponsored ADR have gained 23% over the past month, and currently trade at a forward P/E of 76.71X and a P/CF of 217.33X.The Medical - Biomedical and Genetics industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ARQT and PHAR, even beyond their own solid fundamental situation.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arcutis Biotherapeutics, Inc. (ARQT): Free Stock Analysis Report Pharming Group N.V. Sponsored ADR (PHAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks