Strength Seen in Precision BioSciences (DTIL): Can Its 20.4% Jump Turn into More Strength?
Precision BioSciences (DTIL) shares soared 20.4% in the last trading session to close at $16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.4% gain over the past four weeks.
The sudden rise in the stock price can be attributed to the positive investor midset regarding the company's lead gene editing program PBGENE-HBV, currently in pre-clinical stage. Earlier this month, Precision Biosciences received feedback from the FDA and ex-U.S. agencies, which provided alignment and clarity on its final new drug-enabling preclinical plans and clinical strategy for PBGENE-HBV before advancement into phase I clinical studies. The company plans to file an investigational new drug application for the PBGENE-HBV program in 2024 for the chronic hepatitis B indication.
This genome editing company is expected to post quarterly earnings of $3 per share in its upcoming report, which represents a year-over-year change of +138.4%. Revenues are expected to be $28.5 million, up 168.9% 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 Precision BioSciences, 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 DTIL 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 >>>>
Precision BioSciences is part of the Zacks Medical - Biomedical and Genetics industry. Cue Biopharma, Inc. (CUE), another stock in the same industry, closed the last trading session 5.5% higher at $2.12. CUE has returned -23.9% in the past month.
Cue Biopharma, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.29. Compared to the company's year-ago EPS, this represents a change of +21.6%. Cue Biopharma, Inc. currently boasts a Zacks Rank of #3 (Hold).
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