Wave Life Sciences (WVE) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions
Wave Life Sciences WVE shares rallied 9.5% in the last trading session to close at $7.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 52.2% loss over the past four weeks.
WVE posted a third consecutive day of gains, reflecting a rebound in its share price. The stock had plummeted last week after the company reported mixed interim results from an early-stage obesity study. While a lower dose showed sustained benefits, a higher dose delivered only modest reductions.
This biopharmaceutical company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -17.2%. Revenues are expected to be $10.73 million, up 16.8% 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 Wave Life Sciences, the consensus EPS estimate for the quarter has been revised 1.2% 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 WVE 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 >>>>
Wave Life Sciences is part of the Zacks Medical - Biomedical and Genetics industry. Sutro Biopharma, Inc. STRO, another stock in the same industry, closed the last trading session 3.4% higher at $24.91. STRO has returned 17.3% in the past month.
For Sutro Biopharma, the consensus EPS estimate for the upcoming report has changed +22.2% over the past month to -$4.72. This represents a change of +47% from what the company reported a year ago. Sutro Biopharma currently has a Zacks Rank of #3 (Hold).
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