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Xencor (XNCR) Soars 6.0%: Is Further Upside Left in the Stock?

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Xencor (XNCR - Free Report) shares ended the last trading session 6% higher at $22.51. 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 11% gain over the past four weeks.

The stock rallied driven by the growing optimism over the drug biotech sector in 2024.

This biotech developing antibodies for severe autoimmune/allergic diseases and cancer is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +280%. Revenues are expected to be $140.77 million, up 551.4% 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 Xencor, the consensus EPS estimate for the quarter has been revised 32.7% 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 XNCR 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 >>>>

Xencor is part of the Zacks Medical - Drugs industry. Relay Therapeutics, Inc. (RLAY - Free Report) , another stock in the same industry, closed the last trading session 7.7% higher at $11.86. RLAY has returned 32.3% in the past month.

Relay Therapeutics, Inc.'s consensus EPS estimate for the upcoming report has changed +0.8% over the past month to -$0.71. Compared to the company's year-ago EPS, this represents a change of -26.8%. Relay Therapeutics, Inc. currently boasts a Zacks Rank of #2 (Buy).


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