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Harmony Biosciences Holdings, Inc. (HRMY) Soars 8.3%: Is Further Upside Left in the Stock?

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Harmony Biosciences Holdings, Inc. (HRMY - Free Report) shares soared 8.3% in the last trading session to close at $33.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.1% loss over the past four weeks.

The sudden soaring of the stock price is likely due to the positive momentum built around Harmony's announcement on Wednesday. The company now expects to complete enrollment in the phase III INTUNE study of pitolisant, in the second quarter of 2023. In the study, pitolisant's safety and efficacy is being evaluated for the treatment of idiopathic hypersomnia in adults. Topline data from the study is anticipated in the fourth quarter of 2023.

This company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -13.7%. Revenues are expected to be $118.21 million, up 38.6% 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 Harmony Biosciences Holdings, 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 HRMY 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 >>>>

Harmony Biosciences Holdings, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, 2seventy bio, Inc. (TSVT - Free Report) , closed the last trading session 8.4% higher at $9.98. Over the past month, TSVT has returned -31.7%.

For 2seventy bio, Inc., the consensus EPS estimate for the upcoming report has changed +13.8% over the past month to -$1.19. This represents a change of +62.8% from what the company reported a year ago. 2seventy bio, Inc. currently has a Zacks Rank of #3 (Hold).


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