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Moderna (MRNA) Stock Jumps 8.6%: Will It Continue to Soar?

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Moderna (MRNA - Free Report) shares soared 8.6% in the last trading session to close at $150.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.3% loss over the past four weeks.

The surge in share prices is most likely attributable to the rise in COVID-19 cases in China which have prompted lockdowns throughout the country. Investors feared that it will take a longer period for the pandemic situation to resolve and that there is a need for COVID vaccines. This need was further highlighted by the recent interview of Pfizer’s CEO Albert Bourla wherein he mentioned that a second-booster shot would be necessary and that Pfizer is preparing to submit data to support the authorization for this second booster of its COVID vaccine with the FDA.

This biotechnology company is expected to post quarterly earnings of $6.76 per share in its upcoming report, which represents a year-over-year change of +138%. Revenues are expected to be $5.51 billion, up 184.7% 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 Moderna, the consensus EPS estimate for the quarter has been revised 36.6% 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 MRNA 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 >>>>

Moderna is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, AquaBounty Technologies, Inc. (AQB - Free Report) , finished the last trading session 2.6% lower at $1.48. AQB has returned -5.6% over the past month.

AquaBounty Technologies, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.09. Compared to the company's year-ago EPS, this represents a change of -50%. AquaBounty Technologies, Inc. currently boasts a Zacks Rank of #4 (Sell).

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