Strength Seen in Moderna (MRNA): Can Its 13.9% Jump Turn into More Strength?

Moderna MRNA shares rallied 13.9% in the last trading session to close at $28.14. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.5% loss over the past four weeks.

The surge in the stock price occurred after several reports indicated that Moderna had engaged in strategic negotiations with a major pharmaceutical company regarding a potential large partnership or buyout agreement.

This biotechnology company is expected to post quarterly loss of $2.15 per share in its upcoming report, which represents a year-over-year change of -7266.7%. Revenues are expected to be $860.07 million, down 53.8% 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 Moderna, the consensus EPS estimate for the quarter has been revised 5.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MRNA 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 >>>>

Moderna is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Septerna, Inc. SEPN, finished the last trading session 2.1% lower at $21.49. SEPN has returned 15.5% over the past month.

Septerna, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. Compared to the company's year-ago EPS, this represents a change of +102.3%. Septerna, Inc. currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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