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Twist Bioscience (TWST) Surges 16.1%: Is This an Indication of Further Gains?

Twist Bioscience (TWST) shares ended the last trading session 16.1% higher at $39.37. 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 11.4% gain over the past four weeks.

The stock surge can be attributed to the investor’s optimism around the fourth quarter earnings of the company, to be released soon. The optimism in all probabilities is being driven by the growth performance of the drug/biotech sector’s growth in the ongoing year.

This maker of synthetic DNA for the biotechnology industry is expected to post quarterly loss of $1.28 per share in its upcoming report, which represents a year-over-year change of -52.4%. Revenues are expected to be $56.99 million, up 50.2% 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 Twist Bioscience, 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 TWST 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 >>>>

Twist Bioscience is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Fortress Biotech (FBIO), finished the last trading session 6.5% higher at $0.81. FBIO has returned -4.5% over the past month.

Fortress Biotech's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. Compared to the company's year-ago EPS, this represents a change of -3.9%. Fortress Biotech currently boasts a Zacks Rank of #4 (Sell).

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