6 Green Days In A Row: Tarsus Pharmaceuticals Stock Is Up 19%

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Shares of Tarsus Pharmaceuticals (TARS) have closed higher in each of the last 6 sessions, a cumulative gain of 18.9%. That added about $592 million to the company’s market value, which now stands at about $3.7 billion. The stock closed at $80.28 on Friday, November 13, 11.6% below its 52-week high of $90.78 and 43.1% above its low of $56.11.

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TARS Versus The S&P 500

Returns for TARS and the S&P 500 over the streak and the periods around it, all ending Friday, November 13 and including dividends:
 

Return Period TARS S&P 500
1 Day 4.4% -0.4%
6 Days (Current Streak) 18.9% 2.9%
1 Month (21 Trading Days) 13.1% -2.3%
3 Months (63 Trading Days) 13.7% -2.1%
Year To Date -2.0% 11.5%
1 Year (252 Trading Days) 7.3% 11.7%

Is This Move About Tarsus Pharmaceuticals Or The Market?

Over the same 6 trading days, the S&P 500 returned +2.9% including dividends, so the run is mostly Tarsus Pharmaceuticals’ own story rather than the market’s. Over the past three months the stock is up 13.7%, a window that includes the streak; over the other 57 sessions of that window it was down 4.4%.

Do The Fundamentals Support The Run?

On the fundamentals, revenue grew 86.3% over the last twelve months, against a median of 7.9% for S&P 500 Health Care stocks; and its operating margin is -102.3%, versus a median of 17.4%. Tarsus Pharmaceuticals does not have positive trailing earnings, so there is no meaningful price-to-earnings multiple to compare. The read is mixed: revenue growth above the median on one side, an operating loss on the other.

A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.

One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy

A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?

The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.