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Editas (EDIT) Soars 6.3%: Is Further Upside Left in the Stock?

·2 min read

Editas Medicine (EDIT) shares rallied 6.3% in the last trading session to close at $18.36. 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 10.6% gain over the past four weeks.

Last month, the company reported robust financial results for the fourth quarter and full year of 2021. This might have been driving the share price rally.

This genome editing company is expected to post quarterly loss of $0.81 per share in its upcoming report, which represents a year-over-year change of +5.8%. Revenues are expected to be $4.6 million, down 29.2% 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 Editas, the consensus EPS estimate for the quarter has been revised 2.7% 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 EDIT 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 >>>>

Editas belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Amryt Pharma PLC Sponsored ADR (AMYT), closed the last trading session 3.5% higher at $8.36. Over the past month, AMYT has returned -10.4%.

For Amryt Pharma PLC Sponsored ADR , the consensus EPS estimate for the upcoming report has changed +37.5% over the past month to -$0.05. This represents a change of +44.4% from what the company reported a year ago. Amryt Pharma PLC Sponsored ADR currently has a Zacks Rank of #3 (Hold).

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