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Strength Seen in Cytokinetics (CYTK): Can Its 11.5% Jump Turn into More Strength?

·2 min read

Cytokinetics CYTK shares soared 11.5% in the last trading session to close at $39.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% loss over the past four weeks.

The rise in share prices is likely attributable to positive investor expectations for Cytokinetics’ first-quarter 2021 results which are scheduled to be announced on May 4, after the closing bell.

This biopharmaceutical company is expected to post quarterly loss of $0.93 per share in its upcoming report, which represents a year-over-year change of -40.9%. Revenues are expected to be $5.12 million, down 21.8% 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 Cytokinetics, 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 CYTK 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 >>>>

Cytokinetics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, TELA Bio, Inc. TELA, finished the last trading session 0.4% higher at $9.26. TELA has returned -20.7% over the past month.

TELA Bio, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.50. Compared to the company's year-ago EPS, this represents a change of +10.7%. TELA Bio, Inc. currently boasts a Zacks Rank of #4 (Sell).

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Cytokinetics, Incorporated (CYTK) : Free Stock Analysis Report
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