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Strength Seen in Revance Therapeutics, Inc. (RVNC): Can Its 8.7% Jump Turn into More Strength?

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Revance Therapeutics, Inc. (RVNC - Free Report) shares ended the last trading session 8.7% higher at $19.06. 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 34.9% gain over the past four weeks.

This rally in share prices is attributable to the closing of a note purchase agreement for $300 million. This funding will allow Revance Therapeutics to extend its cash runway into 2024. One of the terms for securing the second tranche requires that the company obtain FDA’s approval to the recently filed biologics license application (BLA) for DaxibotulinumtoxinA for Injection for treatment of moderate to severe glabellar lines. The insertion of such term also suggests that the company expects a positive decision on the BLA filing for the candidate.

 

This company is expected to post quarterly loss of $0.91 per share in its upcoming report, which represents a year-over-year change of +15.7%. Revenues are expected to be $23.55 million, up 77% 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 Revance Therapeutics, Inc., the consensus EPS estimate for the quarter has been revised 2.1% 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 RVNC 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 >>>>

Revance Therapeutics, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. BeiGene, Ltd. (BGNE - Free Report) , another stock in the same industry, closed the last trading session 6.9% lower at $179.62. BGNE has returned -9.4% in the past month.

For BeiGene, Ltd., the consensus EPS estimate for the upcoming report has changed -16.3% over the past month to -$3.99. This represents a change of -678.3% from what the company reported a year ago. BeiGene, Ltd. currently has a Zacks Rank of #3 (Hold).


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