Revolution Medicines, Inc. (RVMD) Soars 23.6%: Is Further Upside Left in the Stock?
Revolution Medicines, Inc. (RVMD) shares ended the last trading session 23.6% higher at $29.91. 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 25.7% loss over the past four weeks.
Last week, the company presented encouraging clinical data for RMC-6236 and RMC-6291, its RAS(ON) inhibitors from the respective phase I/Ib studies. The data support the ongoing development of RMC-6236 and RMC-6291, both as monotherapy and in various combinations, including as a RAS(ON) inhibitor doublet. This might have driven the share price rally.
This company is expected to post quarterly loss of $0.99 per share in its upcoming report, which represents a year-over-year change of -13.8%. Revenues are expected to be $6 million, up 78.6% 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 Revolution Medicines, Inc., the consensus EPS estimate for the quarter has been revised 0.9% 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 RVMD 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 >>>>
Revolution Medicines, Inc. is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Corcept Therapeutics (CORT), finished the last trading session 0.2% lower at $27.56. CORT has returned -18.3% over the past month.
Corcept's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Compared to the company's year-ago EPS, this represents a change of -33.3%. Corcept currently boasts a Zacks Rank of #2 (Buy).
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