IBD Stock Of The Day Axsome Forges Bullish Pattern With Earnings, $2 Billion FDA Decision Looming

			Axsome Therapeutics			

				Axsome Therapeutics				

			AXSM			

$ 181.21

			$1.73
			
			
			
			0.95%
			
			
			
			46%

IBD Stock Analysis

										*   Stock at 3-weeks tight
										*   AXSM Relative Strength line at new high
										*   Earnings coming up

Composite Rating

81/99

Industry Group Ranking

24/197

Emerging Pattern

				Three Weeks Tight

Three Weeks Tight

				After a breakout a stock will sometimes consolidate tightly. A three-weeks tight is when a stock closes within 1% to 1.5% of the prior week's close. A four-weeks-tight pattern also is possible Offers entry for existing holders to add shares.				

• Not real-time data. All data shown was captured at 11:16AM EST on 02/13/2026.

Axsome Therapeutics (AXSM) is Friday’s IBD Stock Of The Day. Shares are forming a three-weeks-tight pattern ahead of quarterly earnings later this month.

The biotech company already preannounced $196 million in fourth-quarter sales. Sales rocketed 65% on a year-over-year basis. Axsome is also approaching potential Food and Drug Administration approval of its drug, Auvelity, for agitation due to Alzheimer’s disease.

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William Blair analyst Myles Minter sees a $2 billion-plus opportunity for Auvelity in Alzheimer’s disease agitation. Today, Auvelity is only approved to treat major depressive disorder. Last year, Auvelity brought in $507.1 million in sales, according to Axsome’s preannouncement.

This would represent a “meaningful commercial expansion beyond major depressive disorder alone,” Minter said in a client note.

Axsome stock’s relative strength line has recently reached new highs. Shares have a strong IBD Digital Relative Strength Rating of 92 out of a best-possible 99. This means Axsome Therapeutics ranks in the top 8% of all stocks when it comes to 12-month performance.

Axsome Therapeutics’ Earnings Due

The biotech company is due to report fourth-quarter earnings on Feb. 23.

Axsome Therapeutics’ two biggest drugs are the depression treatment, Auvelity, and Sunosi. Sunosi is a treatment for excessive daytime sleepiness in patients with narcolepsy. In the fourth quarter, the two brought in a respective $155.1 million and $36.7 million in sales, according to the preannouncement. Auvelity sales would surge more than 67% as Sunosi sales climb 40%.

New migraine treatment Symbravo generated $4.1 million in sales, Axsome said. That lagged expectations ranging between $5.4 million and $6.4 million, William Blair’s Minter said. Still, he sees Symbravo as “an effective combination therapy for treatment-refractory migraines.”

Analysts are turning their attention to Auvelity in Alzheimer’s disease agitation. The FDA is due to make its decision on April 30.

Alzheimer’s Disease Agitation

Clinical testing showed Auvelity, also known by its test name AXS-05, significantly reduced agitation in Alzheimer’s patients compared to a placebo.

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Axsome Therapeutics estimates up to 76% of patients with Alzheimer’s disease also experience agitation.

This represents “a significant unmet medical need for patients and their caregivers,” Chief Executive Herriot Tabuteau said in a December statement. “Currently there is a dearth of approved treatments.”

Axsome is also testing Auvelity as a smoking cessation treatment. The company also has drugs in testing for attention deficit hyperactivity disorder, depression, binge eating disorder, narcolepsy and shift work disorder.

It most recently started a final-phase study of its drug, AXS-14, in patients with fibromyalgia. The 12-week study will be in patients already treated with AXS-14. Half will continue receiving treatment while half will switch to a placebo. Researchers will then evaluate how long after switching before the placebo group starts showing fibromyalgia symptoms.

Axsome Stock Near A Buy Point

On Dec. 31, Axsome stock shot up almost 23% after the FDA granted Auvelity a priority review in Alzheimer’s disease agitation. Shares hit a record 191.50 on Jan. 22 and have been consolidating since, finding support recently at the 21-day moving average.

AXSM stock has a three-weeks-tight pattern with a 191.50 buy point, which could a four-weeks-tight after Friday’s close. The tight action could turn into a flat base, but not before earnings.

Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.

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