Xencor (XNCR) Soars 6.0%: Is Further Upside Left in the Stock?

Xencor (XNCR) shares ended the last trading session 6% higher at $22.51. 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 11% gain over the past four weeks.

The stock rallied driven by the growing optimism over the drug biotech sector in 2024.

This biotech developing antibodies for severe autoimmune/allergic diseases and cancer is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +280%. Revenues are expected to be $140.77 million, up 551.4% 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 Xencor, the consensus EPS estimate for the quarter has been revised 32.7% 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 XNCR 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 >>>>

Xencor is part of the Zacks Medical - Drugs industry. Relay Therapeutics, Inc. (RLAY), another stock in the same industry, closed the last trading session 7.7% higher at $11.86. RLAY has returned 32.3% in the past month.

Relay Therapeutics, Inc.'s consensus EPS estimate for the upcoming report has changed +0.8% over the past month to -$0.71. Compared to the company's year-ago EPS, this represents a change of -26.8%. Relay Therapeutics, Inc. currently boasts a Zacks Rank of #2 (Buy).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Xencor, Inc. (XNCR) : Free Stock Analysis Report

Relay Therapeutics, Inc. (RLAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.