Stoke Therapeutics, Inc. (STOK) shares ended the last trading session 12% higher at $8.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.6% loss over the past four weeks.
The sudden price rise can be attributed to growing investors' optimism related to the company’s progress with the development of its pipeline candidate zorevunersen for treating Dravet syndrome.
This company is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of +35.1%. Revenues are expected to be $10.64 million, up 152% 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 Stoke Therapeutics, the consensus EPS estimate for the quarter has been revised 333.8% 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 STOK 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 >>>>
Stoke Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, XOMA Royalty (XOMA), closed the last trading session 4.3% higher at $22.09. Over the past month, XOMA has returned 1.4%.
XOMA Royalty's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.26. Compared to the company's year-ago EPS, this represents a change of +69.8%. XOMA Royalty currently boasts a Zacks Rank of #3 (Hold).
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Stoke Therapeutics, Inc. (STOK): Free Stock Analysis Report XOMA Royalty Corporation (XOMA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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