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Cue Biopharma, Inc. (CUE) Soars 8.3%: Is Further Upside Left in the Stock?

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Cue Biopharma, Inc. (CUE - Free Report) shares ended the last trading session 8.3% higher at $10.60. 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 14.6% loss over the past four weeks.

Cue Biopharma continues to progress with its lead pipeline candidate, CUE-101, in human papilloma virus (HPV)-driven recurrent/metastatic head and neck cancer in multiple studies, including a combination study with Keytruda. The surge in share price was on account of investors anticipating a positive update from the ongoing phase I study which is evaluating the combination of CUE-101 and Keytruda in the given indication during the company’s conference call on Jan 26. However, shares were down in the after-market as investors were most likely not impressed with the combination's performance.

This company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of +8.1%. Revenues are expected to be $6.5 million, up 1254.8% 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 Cue Biopharma, Inc., the consensus EPS estimate for the quarter has been revised 1.2% 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 CUE 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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