Moderna (MRNA) Moves 13.1% Higher: Will This Strength Last?

Moderna MRNA shares soared 13.1% in the last trading session to close at $112.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.5% gain over the past four weeks.

Share prices surged after analysts at Oppenheimer recently upgraded the stock’s recommendation to Outperform. Per these analysts, Moderna could become ‘a five-product commercial company by 2026’. These analysts were encouraged by Moderna’s upcoming product launches over the next 12 to 18 months, which are expected to boost sales in 2025 and positive pipeline expectations.

This biotechnology company is expected to post quarterly loss of $1.31 per share in its upcoming report, which represents a year-over-year change of -136.3%. Revenues are expected to be $2.36 billion, down 53.5% 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 6.2% 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Exact Sciences EXAS, closed the last trading session 0.3% lower at $73.77. Over the past month, EXAS has returned 12.7%.

Exact Sciences' 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 +26.4%. Exact Sciences 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.

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