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Acceleron (XLRN) Stock Jumps 3.3%: Will It Continue to Soar?

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Acceleron Pharma (XLRN - Free Report) shares ended the last trading session 3.3% higher at $138.01. 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 3.4% gain over the past four weeks.

Shares gained as investors continue to be positive on the uptake of its lead drug and recent pipeline progress.

Price and Consensus

Price Consensus Chart for XLRN

This clinical stage biotech developing protein therapeutics for cancer and rare diseases is expected to post quarterly loss of $0.83 per share in its upcoming report, which represents a year-over-year change of +12.6%. Revenues are expected to be $27.56 million, up 535% 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 Acceleron, the consensus EPS estimate for the quarter has been revised 20.8% 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 XLRN 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 >>>>

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