Beam Therapeutics Inc. (BEAM) Moves 11% Higher: Will This Strength Last?

Beam Therapeutics Inc. (BEAM) shares soared 11% in the last trading session to close at $35.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% loss over the past four weeks.

Last month, the company announced robust financial results for the first quarter of 2022. It also provided various pipeline updates during the same time. This might have been driving the share price rally.

This company is expected to post quarterly loss of $1.08 per share in its upcoming report, which represents a year-over-year change of -13.7%. Revenues are expected to be $13.13 million, up 131150% 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 Beam Therapeutics Inc., 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 BEAM 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 >>>>

Beam Therapeutics Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Mersana Therapeutics, Inc. (MRSN), another stock in the same industry, closed the last trading session 17.5% higher at $3.70. MRSN has returned -8.7% in the past month.

Mersana Therapeutics, Inc.'s consensus EPS estimate for the upcoming report has changed +4.9% over the past month to -$0.50. Compared to the company's year-ago EPS, this represents a change of +15.3%. Mersana Therapeutics, Inc. currently boasts a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.