The fourth-quarter 2024 reporting cycle of the Medical sector is in full swing. The sector primarily comprises pharma/biotech and medical device companies.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The earnings season for the medical sector kicked off late last month when pharma giant J&J reported fourth-quarter earnings. Though J&J’s earnings and sales beat estimates, its 2025 sales guidance fell below expectations. Last week, several pharma big-wigs like AbbVie, Novartis, Roche and Sanofi posted earnings, with most reporting an earnings beat. These drugmakers also announced encouraging sales and profit guidance for 2025.

The Earnings Trends report indicates that as of Jan. 29, 12.3% of the companies in the Medical sector — representing 30.8% of the sector’s market capitalization — reported quarterly earnings. While 85.7% of participants beat on earnings, 57.1% outperformed revenues. Earnings and revenues increased 1.4% and 6.6%, respectively, year over year. Overall, fourth-quarter earnings and sales are expected to rise 12.5% and 8.6%, respectively, from the year-ago quarter’s reported figures.

Zeroing in on Winners

We have highlighted five biotech companies — Amgen AMGN, CRISPR Therapeutics CRSP, Moderna MRNA, Sarepta Therapeutics SRPT and Vertex Pharmaceuticals VRTX — that are expected to deliver a beat in their upcoming quarterly results.

Earnings ESP is our proprietary methodology for determining the stocks with the best chance to deliver an earnings surprise. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The selection can be made with the help of the Zacks Stock Screener.

Our research shows that the chance of an earnings surprise for stocks with this combination is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

5 Biotech Stocks That Match the Criteria

Amgen

One of the biggest biotech companies in the world, Amgen has a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health and nephrology and neuroscience markets. The company has an Earnings ESP of +1.74% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $5.03 per share.

Amgen beat on earnings in each of the trailing four quarters, delivering an average surprise of 4.10%. AMGN is scheduled to report earnings on Feb. 4, after market close.

Amgen Inc. Price and EPS Surprise

Amgen Inc. price-eps-surprise | Amgen Inc. Quote

CRISPR Therapeutics

A leading gene-editing company, CRISPR Therapeutics is focused on developing CRISPR/Cas9-based therapeutics, targeting hemoglobinopathies, cancer, diabetes and other diseases. The company has an Earnings ESP of +2.49% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of $1.17 per share.

CRSP beat on earnings in three of the trailing four quarters and missed the mark in the other, delivering an average surprise of 100.64%.

CRISPR Therapeutics AG Price and EPS Surprise

CRISPR Therapeutics AG price-eps-surprise | CRISPR Therapeutics AG Quote

Moderna

A commercial-stage biotech, Moderna is primarily focused on discovering and developing messenger-RNA (mRNA) based therapies. The company has an Earnings ESP of +8.41% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of $2.86 per share.

Moderna beat on earnings in each of the trailing four quarters, delivering an average surprise of 72.65%. MRNA is scheduled to report earnings on Feb. 14, before the opening bell.

Moderna, Inc. Price and EPS Surprise

Moderna, Inc. price-eps-surprise | Moderna, Inc. Quote

Sarepta Therapeutics

Sarepta is a commercial-stage biopharmaceutical company that focuses on the discovery and development of RNA-based therapeutics targeting rare and infectious diseases. The company has an Earnings ESP of +18.55% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.69 per share.

SRPT beat on earnings in each of the trailing four quarters, delivering an average surprise of 981.21%.

Sarepta Therapeutics, Inc. Price and EPS Surprise

Sarepta Therapeutics, Inc. price-eps-surprise | Sarepta Therapeutics, Inc. Quote

Vertex Pharmaceuticals

Vertex is focused on discovering, developing and commercializing small molecule drugs targeting serious diseases. The company’s main area of focus is cystic fibrosis (CF). The company has an Earnings ESP of +1.63% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.00 per share.

Vertex Pharmaceuticals beat on earnings in three of the trailing four quarters and missed the mark once, delivering an average surprise of 3.26%. VRTX is scheduled to release results on Feb. 10, after market close.

Vertex Pharmaceuticals Incorporated Price and EPS Surprise

Vertex Pharmaceuticals Incorporated price-eps-surprise | Vertex Pharmaceuticals Incorporated Quote

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Amgen Inc. (AMGN) : Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

Moderna, Inc. (MRNA) : Free Stock Analysis Report

Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report

CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report

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