Xeris Biopharma (XERS) Surges After Earnings - Here’s Why It’s Still a Buy

Xeris Biopharma (NASDAQ: XERS) is a biotech company that has brought several products (focused on blood-related issues and Cushing’s syndrome) to market. It’s a $1.06 billion market cap stock — so not a volatile startup, but not a huge business either. 

So, why are we discussing it? 

XERS has rallied by 27.54% over the past five days — which has brought year-to-date (YTD) gains up to 97.11%. On Thursday, the business held its Q2 2025 earnings call — earnings per share (EPS) came in at -$0.01, ahead of analyst estimates, which were pegged at -$0.03. To boot, revenue came in at $71.5 million, outperforming consensus estimates of $64.4 million.

Those weren’t the only good news — the company’s flagship product, Recorlev, saw a 24% increase in the average number of patients, while revenue from the treatment grew 141% on a year-over-year (YoY) basis.

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As positive as these developments are, a simple question presents itself — has the opportunity passed? I don’t think it has — let’s take a look at why I believe the stock still has room to grow.

For one, our quant rating system, Zen Ratings, holds the stock in high esteem. It evaluates equities based on 115 proprietary factors — and XERS ranks in the top 7% of the more than 4,600 stocks that we track. This gives it a Zen Rating of B — which has historically corresponded with an average annual return of 19.88%.

Each Zen Rating is a composite of 7 Component Grade ratings. Our Artificial Intelligence Component Grade rating, for example, uses a neural network trained on two decades of data to evaluate stocks. In this category, Xeris Biopharma shares rank in the top 19% of equities.

However, XERS truly shines in two other categories — Sentiment and Growth. We’ll deal with them in that order.

Our Sentiment Component Grade rating is a measure of earnings surprises, short interest, insider buying and selling, and analyst recommendations — and in this regard, the stock ranks in the top 2%. At the moment, XERS is a consensus Buy, as it has 4 Buy ratings and 1 Hold rating from Wall Street analysts.

Moreover, the company has managed to secure a significant degree of institutional support. Despite being a low-profile small cap, 54.20% of XERS shares are held by institutions. Insiders own an additional 15.42%.

Our Growth Component Grade rating takes into account sales growth, projected earnings growth, free cash flow momentum, and operating income growth. This is Xeris Biopharma’s strongest suit, as it ranks in the top 1% in this category.

In fact, this is one of the 7 highest-rated stocks when it comes to Growth — and this has earned it a spot in our exclusive Zen Strategies Growth portfolio, which has provided an average annual return of 32.26% since 2003, far above the S&P 500’s average yearly gain of 11.14%.

As steep as the recent rally has been, readers should keep in mind that XERS is still trading far below its all-time high (ATH) of $23.

Now, let’s return to more grounded matters. In the latest earnings call, management increased guidance from the $260 million to $275 million range to $280 million to $290 million. If met, this will represent roughly 40% year-over-year growth.

The company’s newest product, Gvoke VialDx, a diagnostic aid, saw revenue growth of 17% on a YoY basis. While solid, this is a far cry from the flagship product’s 141% YoY growth. However, there might just be a silver lining on the horizon — and it’s called XP-8121.

XP-8121 is a novel once-weekly subcutaneous hypothyroidism treatment. Roughly 5 million people struggle to keep the condition in check with oral treatments due to gastrointestinal absorption issues. Xeris estimates the potential peak net revenue to be $1 to $3 billion — and the treatment is set to enter phase 3 trials in 2026.

Even without the last factor we’ve discussed, Xeris’ growth metrics make it a compelling stock — but if XP-8121 does hit the market, XERS could see significant capital appreciation in the years to come.

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