Capricor Therapeutics (CAPR) shares soared 12% in the last trading session to close at $6.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.3% loss over the past four weeks.
The sharp rise in CAPR shares can be attributed to the company’s recent regulatory progress and growing optimism around upcoming clinical milestones. Management’s prior update confirming FDA alignment on trial endpoints has strengthened expectations for a potential data readout and future filing, prompting investors to reposition ahead of these catalysts. With sentiment improving and short interest elevated, incremental buying likely triggered short covering, which further accelerated the move.
This biotechnology company is expected to post quarterly loss of $0.54 per share in its upcoming report, which represents a year-over-year change of -42.1%. Revenues are expected to be $2.4 million, up 6.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Capricor, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CAPR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Capricor is part of the Zacks Medical - Products industry. LeMaitre Vascular (LMAT), another stock in the same industry, closed the last trading session 0.8% lower at $88.87. LMAT has returned 2.3% in the past month.
LeMaitre's consensus EPS estimate for the upcoming report has changed +2.9% over the past month to $0.57. Compared to the company's year-ago EPS, this represents a change of +16.3%. LeMaitre currently boasts a Zacks Rank of #3 (Hold).
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Capricor Therapeutics, Inc. (CAPR): Free Stock Analysis Report LeMaitre Vascular, Inc. (LMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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