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Aurinia (AUPH) Surges 11.0%: Is This an Indication of Further Gains?

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Aurinia Pharmaceuticals (AUPH - Free Report) shares ended the last trading session 11% higher at $10.31. 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 10.6% gain over the past four weeks.

The sudden soar in stock price of the company is likely due to the positive momenturm built around the pipeline of the company. Aurinia's sole-marketed product, Lupkynis, is approved in the United States for the treatment of lupus nephritis. The product has witnessed solid uptake since launch and is expected to perform well in the upcoming quarters. Additionally, the company expects to file two investigational new drug applications in 2023, for AUR200 and AUR300, both currently in pre-clinical studies. 

This biotechnology company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $27.72 million, up 28.2% 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 Aurinia, the consensus EPS estimate for the quarter has been revised 11.3% 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 AUPH 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 >>>>

Aurinia is part of the Zacks Medical - Drugs industry. Lyell Immunopharma (LYEL - Free Report) , another stock in the same industry, closed the last trading session 1% lower at $2.01. LYEL has returned -12.1% in the past month.

Lyell Immunopharma's consensus EPS estimate for the upcoming report has changed -6.9% over the past month to -$0.28. Compared to the company's year-ago EPS, this represents no change. Lyell Immunopharma currently boasts a Zacks Rank of #3 (Hold).

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