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Strength Seen in Seres Therapeutics (MCRB): Can Its 5.8% Jump Turn into More Strength?

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Seres Therapeutics (MCRB - Free Report) shares soared 5.8% in the last trading session to close at $6.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% loss over the past four weeks.

The surge in the stock price is likely due to positive momentum building around the company's lead pipeline candidate SER-109. A biologic license application (BLA) filing is currently under FDA review seeking approval for SER-109 for the prevention of recurrent C. difficile infection (rCDI) with a PDUFA date of Apr 26, 2023. Currently devoid of marketed drugs, Seres may have its first FDA approved drug by the end of this month.

 

This drug developer is expected to post quarterly loss of $0.52 per share in its upcoming report, which represents a year-over-year change of +14.8%. Revenues are expected to be $2 million, up 34.2% 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 Seres Therapeutics, 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 MCRB 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 >>>>

Seres Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Humacyte, Inc. (HUMA - Free Report) , closed the last trading session 4.9% lower at $3.31. Over the past month, HUMA has returned 22.1%.

Humacyte, Inc.'s consensus EPS estimate for the upcoming report has changed +16.3% over the past month to -$0.22. Compared to the company's year-ago EPS, this represents no change. Humacyte, Inc. currently boasts a Zacks Rank of #3 (Hold).


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