Strength Seen in Xencor (XNCR): Can Its 5.3% Jump Turn into More Strength?

·2-min read

Xencor XNCR shares ended the last trading session 5.3% higher at $28.41. 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 27% loss over the past four weeks.

The rise in share price can be attributed to positive investor expectations for the company’s pipeline targeting cancer and autoimmune diseases. Xencor’s lead pipeline candidate is vudalimab, which is being developed in separate mid-stage studies for prostate cancer and advanced gynecologic tumors, respectively.

This biotech developing antibodies for severe autoimmune/allergic diseases and cancer is expected to post quarterly loss of $0.75 per share in its upcoming report, which represents a year-over-year change of -292.3%. Revenues are expected to be $18.76 million, down 78.1% 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 Xencor, the consensus EPS estimate for the quarter has been revised 8.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on XNCR 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 >>>>

Xencor is part of the Zacks Medical - Drugs industry. Ironwood Pharmaceuticals IRWD, another stock in the same industry, closed the last trading session 1.8% lower at $10.48. IRWD has returned -4.5% in the past month.

For Ironwood , the consensus EPS estimate for the upcoming report has changed +6.5% over the past month to $0.25. This represents a change of +19.1% from what the company reported a year ago. Ironwood currently has a Zacks Rank of #3 (Hold).

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