Crinetics Pharmaceuticals (CRNX) Stock Jumps 19.1%: Will It Continue to Soar?
Crinetics Pharmaceuticals, Inc. (CRNX) shares ended the last trading session 19.1% higher at $45.18. 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 0.3% gain over the past four weeks.
The sudden surge in the stock price was observed after Crinetics reported achieving primary and all key secondary endpoints, with statistical significance, in the second (PATHFNDR-2) of two late-stage studies evaluating the efficacy and safety of lead candidate, paltusotine, for the treatment of acromegaly. The company had also previously reported meeting goals in the phase III PATHFNDR-1 study. Based on encouraging results from both the late-stage studies, Crinetics is currently gearing up to submit a regulatory application to the FDA seeking approval of paltusotine for the acromegaly indication, in the second half of 2024.
This company is expected to post quarterly loss of $0.84 per share in its upcoming report, which represents a year-over-year change of +1.2%. Revenues are expected to be $0.82 million, down 69.6% 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 Crinetics Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 5.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CRNX 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 >>>>
Crinetics Pharmaceuticals is part of the Zacks Medical - Drugs industry. Catalyst Pharmaceutical (CPRX), another stock in the same industry, closed the last trading session 1.9% higher at $16.39. CPRX has returned 14.9% in the past month.
For Catalyst , the consensus EPS estimate for the upcoming report has changed -28.4% over the past month to $0.41. This represents a change of +57.7% from what the company reported a year ago. Catalyst currently has a Zacks Rank of #4 (Sell).
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