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Morphic Holding, Inc. (MORF) Surges 18.7%: Is This an Indication of Further Gains?

Morphic Holding, Inc. (MORF) shares ended the last trading session 18.7% higher at $31.84. 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 2.4% loss over the past four weeks.

Shares of the company were high as optimism builds around growth for the drug/biotech sector in 2023.

This company is expected to post quarterly loss of $0.85 per share in its upcoming report, which represents a year-over-year change of -49.1%. Revenues are expected to be $2.83 million, down 70.4% 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 Morphic Holding, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MORF 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 >>>>

Morphic Holding, Inc. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Wave Life Sciences (WVE), finished the last trading session 0.2% lower at $5.25. WVE has returned -12.6% over the past month.

For Wave Life Sciences , the consensus EPS estimate for the upcoming report has changed +9.8% over the past month to -$0.42. This represents a change of +31.2% from what the company reported a year ago. Wave Life Sciences currently has a Zacks Rank of #3 (Hold).

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