Syndax Pharmaceuticals (SNDX Quick QuoteSNDX - Free Report) shares soared 10.7% in the last trading session to close at $14.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.2% loss over the past four weeks.

Earlier this week, the company announced positive interim data from the phase I dose escalation portion of the phase I/II AUGMENT-101 study which is evaluating its oral menin inhibitor, SNDX-5613 in patients with mixed lineage leukemia rearranged and nucleophosmin (NPM1c) mutant relapsed/refractory acute leukemias. This might have been driving the rally.

Price and Consensus

This biopharmaceutical company is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $0.5 million, up 31.6% 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 Syndax, the consensus EPS estimate for the quarter has been revised 11.1% 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 SNDX 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 >>>>