Recursion Pharmaceuticals (RXRX) shares rallied 7.4% in the last trading session to close at $11.93. 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 47.4% gain over the past four weeks.
Last week, Recursion signed an agreement with Germany’s Bayer AG to in-license a new chemical entity targeting fibrotic diseases from the companies’ fibrosis research collaboration. This might have driven the share price rally.
This biotechnology company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -45.2%. Revenues are expected to be $10.05 million, down 26.5% 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 Recursion Pharmaceuticals, 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 RXRX 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 >>>>
Recursion Pharmaceuticals is part of the Zacks Medical - Drugs industry. Catalent (CTLT), another stock in the same industry, closed the last trading session 5.3% higher at $45.73. CTLT has returned 16% in the past month.
For Catalent
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>Recursion Pharmaceuticals, Inc. (RXRX) : Free Stock Analysis Report
Catalent, Inc. (CTLT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
