AxoGen (AXGN Quick QuoteAXGN - Free Report) shares soared 12.5% in the last trading session to close at $22.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.9% gain over the past four weeks.

The stock rallied following the release of encouraging first-quarter 2021 results on May 5. The company’s net loss of 8 cents was significantly narrower than the Zacks Consensus Estimate of a loss of 17 cents. Revenues of $31 million surpassed the consensus mark by 8.3%. The company reinitiated guidance for 2021, calling for year-over-year revenue growth.

Price and Consensus

This regenerative medicine company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +6.7%. Revenues are expected to be $30.45 million, up 37.7% 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 AxoGen, 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 AXGN 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 >>>>