Allogene Therapeutics (ALLO) Soars 15.7%: Is Further Upside Left in the Stock?

Allogene Therapeutics ALLO shares ended the last trading session 15.7% higher at $7.94. 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 15.1% gain over the past four weeks.

Share prices likely rose after the analysts at JP Morgan upgraded the stock’s recommendation to “Overweight”. JP Morgan’s analysts believe Allogene’s CD19 candidate ALLO-501A is a commercially viable candidate with a competitive profile compared to other auto CAR-Ts in the late-line setting in large B cell lymphoma (LBCL).

This immuno-oncology company is expected to post quarterly loss of $0.71 per share in its upcoming report, which represents a year-over-year change of -31.5%. Revenues are expected to be $0.05 million, unchanged compared to 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 Allogene Therapeutics, 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 ALLO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Allogene Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Kiniksa Pharmaceuticals, Ltd. KNSA, finished the last trading session 0.5% lower at $13.93. KNSA has returned -9.4% over the past month.

For Kiniksa Pharmaceuticals, Ltd. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.24. This represents a change of +54.7% from what the company reported a year ago. Kiniksa Pharmaceuticals, Ltd. currently has a Zacks Rank of #3 (Hold).

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