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BioCryst (BCRX) Moves 25.6% Higher: Will This Strength Last?

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BioCryst Pharmaceuticals (BCRX - Free Report) shares soared 25.6% in the last trading session to close at $7.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7% gain over the past four weeks.

Last week, the company announced robust preliminary net revenues for the fourth quarter of 2023 as well an upbeat guidance for 2024. Preliminary Orladeyo revenues were $89.9 million for the fourth quarter of 2023, reflecting an increase of 27% year over year. The company expects net Orladeyo revenues to be between $380 million and $400 million for 2024. This might have driven the share price rally.

This drugmaker is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +36.8%. Revenues are expected to be $88.83 million, up 11.7% 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 BioCryst, 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 BCRX 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 >>>>

BioCryst is part of the Zacks Medical - Drugs industry. Nektar Therapeutics (NKTR - Free Report) , another stock in the same industry, closed the last trading session 9.7% higher at $0.59. NKTR has returned 5.8% in the past month.

For Nektar, the consensus EPS estimate for the upcoming report has changed +1.8% over the past month to -$0.19. This represents a change of +40.6% from what the company reported a year ago. Nektar currently has a Zacks Rank of #3 (Hold).

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