Recursion Pharmaceuticals (RXRX) shares ended the last trading session 8.2% higher at $5.52. 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 10.2% gain over the past four weeks.
The price rise can be attributed to the growing investor optimism regarding the potential of Recursion's early-stage oncology pipeline being developed using its AI-driven platform technology.
This biotechnology company is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -2.9%. Revenues are expected to be $17.45 million, down 33.1% 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 a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Arcturus Therapeutics (ARCT), finished the last trading session 6.8% higher at $21.88. ARCT has returned 19.1% over the past month.
Arcturus Therapeutics' consensus EPS estimate for the upcoming report has changed -3.5% over the past month to -$1.09. Compared to the company's year-ago EPS, this represents a change of -319.2%. Arcturus Therapeutics currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
