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Alector (ALEC) Stock Jumps 57.1%: Will It Continue to Soar?

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Alector (ALEC - Free Report) shares soared 57.1% in the last trading session to close at $35.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.5% gain over the past four weeks.

The stock rallied driven by optimism over its collaboration deal with GlaxoSmithKline to co-develop/commercialize its two monoclonal antibodies – AL001 and AL101 for treating various types of neurodegenerative diseases.

This biotechnology company is expected to post quarterly loss of $0.68 per share in its upcoming report, which represents a year-over-year change of -17.2%. Revenues are expected to be $8.93 million, up 181.6% 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 Alector, 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 ALEC 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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