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ChemoCentryx (CCXI) Moves 109.2% Higher: Will This Strength Last?

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ChemoCentryx shares rallied 109.2% in the last trading session to close at $50.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.8% loss over the past four weeks.

The stock rallied driven by optimism over the agreement under which Amgen agreed to acquire ChemoCentryx for approximately $3.7 billion in cash.

This biopharmaceutical company is expected to post quarterly loss of $0.51 per share in its upcoming report, which represents a year-over-year change of +8.9%. Revenues are expected to be $12.79 million, up 606.6% 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 ChemoCentryx, the consensus EPS estimate for the quarter has been revised marginally 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 CCXI 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 >>>>

ChemoCentryx belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Marinus Pharmaceuticals (MRNS - Free Report) , closed the last trading session 2% higher at $5.49. Over the past month, MRNS has returned 12.8%.

Marinus Pharmaceuticals' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.93. Compared to the company's year-ago EPS, this represents a change of -43.1%. Marinus Pharmaceuticals currently boasts a Zacks Rank of #3 (Hold).


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