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Strength Seen in Acadia (ACAD): Can Its 5.0% Jump Turn into More Strength?

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Acadia Pharmaceuticals (ACAD - Free Report) shares rallied 5% in the last trading session to close at $20.38. 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 1.2% gain over the past four weeks.

The sudden soaring of the stock price can be attributed to the positive momentum built around the recent FDA approval of Acadia's trofinetide for the treatment of Rett syndrome in adult and pediatric patients two years of age and older. The drug will be marketed in the United States under the brand name, Daybue, and is expected to be made available, in the United States, by the end of April 2023. Per the company, Daybue currently stands as the first and only drug approved for the treatment of Rett syndrome.

 

This drugmaker is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +70%. Revenues are expected to be $123.54 million, up 7% 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 Acadia, the consensus EPS estimate for the quarter has been revised 25.8% 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 ACAD 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 >>>>

Acadia is part of the Zacks Medical - Biomedical and Genetics industry. EyePoint Pharmaceuticals (EYPT - Free Report) , another stock in the same industry, closed the last trading session 2% lower at $2.52. EYPT has returned -37% in the past month.

For EyePoint Pharmaceuticals, the consensus EPS estimate for the upcoming report has changed +8.5% over the past month to -$0.65. This represents a change of -25% from what the company reported a year ago. EyePoint Pharmaceuticals currently has a Zacks Rank of #2 (Buy).


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