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Strength Seen in Pliant Therapeutics, Inc. (PLRX): Can Its 8.3% Jump Turn into More Strength?

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Pliant Therapeutics, Inc. (PLRX - Free Report) shares soared 8.3% in the last trading session to close at $20.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.5% gain over the past four weeks.

Shares price has rising since earlier this week when management announced that it will report topline 12-week data from a mid-stage study evaluating its lead pipeline candidate in idiopathic pulmonary fibrosis (IPF) patients in early first-quarter 2023. This rise reflects positive investor expectations for the company’s lead candidate.

This company is expected to post quarterly loss of $0.70 per share in its upcoming report, which represents a year-over-year change of -2.9%. Revenues are expected to be $1.55 million, down 22.7% 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 Pliant Therapeutics, 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 PLRX 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 >>>>

Pliant Therapeutics, Inc. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, AbCellera Biologics Inc. (ABCL - Free Report) , finished the last trading session 2.4% higher at $9.60. ABCL has returned -6.9% over the past month.

For AbCellera Biologics Inc., the consensus EPS estimate for the upcoming report has changed -26.3% over the past month to $0.01. This represents a change of -94.7% from what the company reported a year ago. AbCellera Biologics Inc. currently has a Zacks Rank of #3 (Hold).


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