Nurix Therapeutics, Inc. (NRIX) Soars 8.3%: Is Further Upside Left in the Stock?
Nurix Therapeutics, Inc. (NRIX) shares ended the last trading session 8.3% higher at $8.98. 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 8.8% loss over the past four weeks.
The sudden soaring of the stock price is likely due to the strategic collaboration agreement with Seagen SGEN, announced by Nurix, to jointly develop a new class of medicines called degrader-antibody conjugates in cancer treatment. Per the agreement, Nurix is entitled to receive an upfront payment of $60 million from Seagen, which will provide the company with an influx of cash. Nurix is also entited to receive up to approximately $3.4 billion in research, development, regulatory and commercial milestone payments across multiple programs from Seagen. Furthermore, the agreement also grants Nurix mid-single to low double digit tiered royalties from SGEN on future sales.
This company is expected to post quarterly loss of $0.86 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $11.05 million, up 2.4% 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 Nurix Therapeutics, 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 NRIX 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 >>>>
Nurix Therapeutics, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Swedish Orphan Biovitrum (BIOVF), closed the last trading session 1.8% higher at $19.95. Over the past month, BIOVF has returned 1.3%.
Swedish Orphan Biovitrum's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. Compared to the company's year-ago EPS, this represents a change of -35.7%. Swedish Orphan Biovitrum currently boasts a Zacks Rank of #2 (Buy).
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