Editas (EDIT) Surges 15.5%: Is This an Indication of Further Gains?
Editas Medicine (EDIT) shares soared 15.5% in the last trading session to close at $11.47. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% loss over the past four weeks.
The sudden surging of the strock price can be attributed to the positive momentum biuilt around the company's pipeline. Editas' lead candidate, EDIT-301 is being eavulated for treating sickle cell disease and transfusion-dependent beta thalassemia in the RUBY and EdiThal studies, respectectively. The company recently reported upbeat initial data from both the studies evaluating EDIT-301 for the above-mentioned indications. Editas reported remaining on track to dose 20 patients in the RUBY study along with additional updates from the same study by the end of 2023. Top-line data from the EdiTHAL study is also expected by the year’s end.
This genome editing company is expected to post quarterly loss of $0.76 per share in its upcoming report, which represents a year-over-year change of +2.6%. Revenues are expected to be $6.28 million, down 1.2% 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 Editas, the consensus EPS estimate for the quarter has been revised 0.8% 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 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, Fate Therapeutics (FATE), closed the last trading session 2.6% higher at $5.55. Over the past month, FATE has returned 1.5%.
For Fate Therapeutics , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.59. This represents a change of +25.3% from what the company reported a year ago. Fate Therapeutics currently has a Zacks Rank of #3 (Hold).
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