Strength Seen in BioCryst (BCRX): Can Its 15.2% Jump Turn into More Strength?

Zacks Equity Research
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BioCryst Pharmaceuticals BCRX shares ended the last trading session 15.2% higher at $12.59. 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 27.9% loss over the past four weeks.

This rise was most likely attributable to the recovery of the share prices of BioCryst after they declined in the last week when the company announced that it is pausing enrolment in clinical studies for its pipeline candidate, BCX9930.

This drugmaker is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -8.3%. Revenues are expected to be $50.59 million, up 165.4% 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 BioCryst, 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 BCRX 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 >>>>

BioCryst is part of the Zacks Medical - Drugs industry. Ironwood Pharmaceuticals IRWD, another stock in the same industry, closed the last trading session 1.7% higher at $12.28. IRWD has returned 1.3% in the past month.

Ironwood's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. Compared to the company's year-ago EPS, this represents a change of +29.2%. Ironwood currently boasts a Zacks Rank of #3 (Hold).


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