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Wave Life Sciences (WVE) Soars 8.7%: Is Further Upside Left in the Stock?

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Wave Life Sciences (WVE - Free Report) shares ended the last trading session 8.7% higher at $5.74. 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 17.9% gain over the past four weeks.

The sudden rise in the stock price was observed after the company shared its development plan for its lead candidate in the WVE-006, for alpha-1 antitrypsin deficiency (AATD), along with other growth strategy. Per Wave, WVE-006 is the industry’s first-ever RNA editing clinical candidate. The company has reported submitting its first clinical trial application for WVE-006. Dosing of patients in the clinical study program for WVE-006, RestorAATion, is expected to begin in fourth-quarter 2023. Wave anticipates delivering proof-of-mechanism data in AATD in 2024.

This biopharmaceutical company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $24.34 million, up 8292.4% 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 Wave Life Sciences, 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 WVE 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 >>>>

Wave Life Sciences is part of the Zacks Medical - Biomedical and Genetics industry. PhenomeX Inc. , another stock in the same industry, closed the last trading session 0.2% higher at $1. CELL has returned 4.9% in the past month.

PhenomeX Inc.'s consensus EPS estimate for the upcoming report has changed -4.1% over the past month to -$0.25. Compared to the company's year-ago EPS, this represents a change of +21.9%. PhenomeX Inc. currently boasts a Zacks Rank of #3 (Hold).

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