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Voyager Therapeutics (VYGR) Surges 12.1%: Is This an Indication of Further Gains?

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Voyager Therapeutics (VYGR - Free Report) shares soared 12.1% in the last trading session to close at $7.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 78.5% gain over the past four weeks.

Earlier this month, the company announced a license option agreement with Novartis. Per the terms of the deal, Novartis receives a target-specific access to Voyager’s novel TRACER AAV capsids for potential use with three CNS targets plus options to access capsids for two additional targets. In exchange, Voyager will receive $54 million upfront and is entitled to receive up to $37.5 million of exercise fees for options related to the three initial CNS targets. This might have been driving the share price rally.

This gene therapy company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +75.9%. Revenues are expected to be $28.25 million, up 334.6% 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 Voyager Therapeutics, the consensus EPS estimate for the quarter has been revised 82.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VYGR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Voyager Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Epizyme , another stock in the same industry, closed the last trading session 9.2% higher at $1.31. EPZM has returned -25.9% in the past month.

Epizyme's consensus EPS estimate for the upcoming report has changed -1.5% over the past month to -$0.35. Compared to the company's year-ago EPS, this represents a change of +49.3%. Epizyme currently boasts a Zacks Rank of #3 (Hold).


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