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Ultragenyx (RARE) Soars 6.1%: Is Further Upside Left in the Stock?

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Ultragenyx (RARE - Free Report) shares rallied 6.1% in the last trading session to close at $41.14. 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 5.3% gain over the past four weeks.

The sudden rise in the stock price can be attributed to positive investor expectations from the upcoming milestone events for some of the candidates in Ultragenyx's pipeline, due next month. In June 2023, the company reported positive phase II data from its phase II/III Orbit study of UX143 for osteogenesis imperfecta. Additional data from the phase II portion of the study is expected in mid-October. Also in mid-October, RARE is expected to provide an interim program update from its early-mid-stage study of GTX-102 for Angelman syndrome.  

This biotechnology company is expected to post quarterly loss of $2.05 per share in its upcoming report, which represents a year-over-year change of +15.6%. Revenues are expected to be $110.67 million, up 22% 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 Ultragenyx, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on RARE 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 >>>>

Ultragenyx belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Editas Medicine (EDIT - Free Report) , closed the last trading session 2.3% lower at $8.91. Over the past month, EDIT has returned 3.2%.

For Editas, the consensus EPS estimate for the upcoming report has changed -1% over the past month to -$0.64. This represents a change of +21% from what the company reported a year ago. Editas currently has a Zacks Rank of #3 (Hold).

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