Back to top

Image: Bigstock

Strength Seen in Morphic Holding, Inc. (MORF): Can Its 7% Jump Turn into More Strength?

Read MoreHide Full Article

Morphic Holding, Inc. (MORF - Free Report) shares ended the last trading session 7% higher at $31.87. 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 26.4% loss over the past four weeks.

The rise in share prices is likley attributable to positive investor expectations for Morphic’s lead pipeline candidate, MORF-057. Data from a mid-stage study evaluating it as potential treatment for ulcerative colitis in few months.

This company is expected to post quarterly loss of $0.71 per share in its upcoming report, which represents a year-over-year change of -12.7%. Revenues are expected to be $5 million, up 52.9% 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 Morphic Holding, Inc., 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 MORF 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 >>>>

Morphic Holding, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Codiak BioSciences, Inc. (CDAK - Free Report) , closed the last trading session 10.8% lower at $3.31. Over the past month, CDAK has returned -33.4%.

Codiak BioSciences, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.80. Compared to the company's year-ago EPS, this represents a change of -56.9%. Codiak BioSciences, Inc. currently boasts a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Morphic Holding, Inc. (MORF) - free report >>

Codiak BioSciences, Inc. (CDAK) - free report >>

Published in