Strength Seen in Immatics (IMTX): Can Its 18% Jump Turn into More Strength?

Immatics IMTX shares soared 18% in the last trading session to close at $9.46. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.7% gain over the past four weeks.

The rise in share prices is attributable to positive investor expectations for Immatics’ pipeline candidates targeting cancer indications. Data from multiple cohorts of a phase Ib study evaluating its investigational cell therapy, IMA401, both as a monotherapy and in combination with an immune checkpoint inhibitor in advanced solid tumors is expected later this year.

This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +128.3%. Revenues are expected to be $42.27 million, up 576.2% 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 Immatics, 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 IMTX 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 >>>>

Immatics is part of the Zacks Medical - Biomedical and Genetics industry. Cellectis S.A. CLLS, another stock in the same industry, closed the last trading session 3.5% higher at $2.70. CLLS has returned -3% in the past month.

For Cellectis S.A. , the consensus EPS estimate for the upcoming report has changed -18.8% over the past month to -$0.73. This represents a change of +17.1% from what the company reported a year ago. Cellectis S.A. currently has a Zacks Rank of #3 (Hold).

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