Sarepta Therapeutics (SRPT) Soars 7.1%: Is Further Upside Left in the Stock?

Sarepta Therapeutics SRPT shares soared 7.1% in the last trading session to close at $131.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.5% loss over the past four weeks.

This rise was most likely attributable to the recovery of the share prices of Sarepta after they declined in the last week when the company the FDA's decision to hold an unexpected advisory meeting for the biologics license application (BLA) of its lead gene therapy candidate SRP-9001.

This biopharmaceutical company is expected to post quarterly loss of $1.41 per share in its upcoming report, which represents a year-over-year change of -17.5%. Revenues are expected to be $234.73 million, up 11.3% 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 Sarepta Therapeutics, the consensus EPS estimate for the quarter has been revised 10.3% 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 SRPT 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 >>>>

Sarepta Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, BioNTech SE Sponsored ADR BNTX, finished the last trading session 1.9% higher at $132.08. BNTX has returned -6.5% over the past month.

For BioNTech SE Sponsored ADR, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $8.68. This represents a change of -37.7% from what the company reported a year ago. BioNTech SE Sponsored ADR currently has a Zacks Rank of #5 (Strong Sell).

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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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