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Strength Seen in Akoya (AKYA): Can Its 7.4% Jump Turn into More Strength?

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Akoya Biosciences (AKYA - Free Report) shares soared 7.4% in the last trading session to close at $5.96. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.7% gain over the past four weeks.

The sudden rise in the stock price can be attributed to the positive investor expectations regarding the company's financial performance in the fourth quarter of 2023. Akoya generates revenues from the sale of its products and services. Product revenues include the sale of instruments, reagents and software. Per its preliminary fourth-quarter 2023 earnings press release, the company expects total revenues in the range of $25.5-26.5 million, marking a 20-25% increase compared to the $21.2 million recorded in the year-ago quarter.

This tissue analysis provider is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of +46%. Revenues are expected to be $26.12 million, up 23.1% 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 Akoya, 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 AKYA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Akoya is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Avidity Biosciences, Inc. (RNA - Free Report) , finished the last trading session 5.8% higher at $12.32. RNA has returned 1.6% over the past month.

Avidity Biosciences, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.54. Compared to the company's year-ago EPS, this represents a change of +38.6%. Avidity Biosciences, Inc. currently boasts a Zacks Rank of #3 (Hold).


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