Tango Therapeutics (TNGX) Moves 7.5% Higher: Will This Strength Last?

Tango Therapeutics, Inc. (TNGX) shares rallied 7.5% in the last trading session to close at $5.16. 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 157.4% gain over the past four weeks.

Last month, the company announced that it had dosed the first patient in the TNG456 phase I/II study evaluating TNG456 in patients with MTAP-deleted solid tumors, with a focus on glioblastoma. The growing optimism related to the company’s set of pipeline candidates, being developed as the next generation of precision medicines for the treatment of cancer, might have driven the recent share price rally.

This company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $5.79 million, down 70.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Tango Therapeutics, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TNGX 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 >>>>

Tango Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Protagonist Therapeutics (PTGX), closed the last trading session 1.1% lower at $53.34. Over the past month, PTGX has returned 17.5%.

Protagonist Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.53. Compared to the company's year-ago EPS, this represents a change of -6%. Protagonist Therapeutics 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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