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Reata Pharmaceuticals, Inc. (RETA) Stock Jumps 20.6%: Will It Continue to Soar?

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Reata Pharmaceuticals, Inc. shares soared 20.6% in the last trading session to close at $30.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.9% loss over the past four weeks.

The rise in share price was likely owing to the FDA’s decision to not hold an advisory committee meeting to review Reata’s new drug application (NDA) seeking approval for its lead pipeline candidate, omaveloxolone, as a treatment for patients with Friedreich’s ataxia.

This company is expected to post quarterly loss of $2.35 per share in its upcoming report, which represents a year-over-year change of -19.3%. Revenues are expected to be $1.43 million, down 80.7% 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 Reata Pharmaceuticals, 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 RETA 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 >>>>

Reata Pharmaceuticals, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. BioNTech SE Sponsored ADR (BNTX - Free Report) , another stock in the same industry, closed the last trading session 3.1% lower at $135.62. BNTX has returned -2.9% in the past month.

BioNTech SE Sponsored ADR's consensus EPS estimate for the upcoming report has changed +31.9% over the past month to $4.06. Compared to the company's year-ago EPS, this represents a change of -72.1%. BioNTech SE Sponsored ADR currently boasts a Zacks Rank of #4 (Sell).


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