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Strength Seen in Adaptive Biotechnologies (ADPT): Can Its 9.5% Jump Turn into More Strength?

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Adaptive Biotechnologies (ADPT - Free Report) shares soared 9.5% in the last trading session to close at $5.56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.7% loss over the past four weeks.

The sudden soaring of the stock price, can be attributed to the positive investor mindset regarding the company's clonoSEQ test service, the first FDA-approved in vitro diagnostic test service to detect minimal residual disease (MRD) in several cancer indications. Recently, Adaptive announced the availability of clonoSEQ to doctors as a fully integrated test in Aura, Epic’s specialty diagnostics suite. The announced integration with Epic EHR provides doctors with convenient access to clonoSEQ MRD results directly in patient records, which is expected to speed up efficient decision-making. This also benefits the patients by equipping them with real-time insights into their disease status.

This life-sciences research company is expected to post quarterly loss of $0.32 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $43.6 million, down 8.8% 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 Adaptive Biotechnologies, 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 ADPT 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 >>>>

Adaptive Biotechnologies is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Arcus Biosciences, Inc. (RCUS - Free Report) , finished the last trading session 2.9% higher at $19.20. RCUS has returned -14.3% over the past month.

Arcus Biosciences, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.19. Compared to the company's year-ago EPS, this represents a change of -32.2%. Arcus Biosciences, Inc. currently boasts a Zacks Rank of #3 (Hold).

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