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Strength Seen in Regenxbio (RGNX): Can Its 11.7% Jump Turn into More Strength?

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Regenxbio (RGNX - Free Report) shares ended the last trading session 11.7% higher at $14.57. 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% loss over the past four weeks.

The sudden rise in the stock price was observed after the company announced positive topline results from the phase I/II/II study of its investigational one-time gene therapy candidate, RGX-121, to treat pediatric patients with Hunter syndrome. A regulatory filing for RGX-121 to treat this indication is expected in 2024, under the FDA's accelerated approval pathway. 

This biotechnology company is expected to post quarterly loss of $1.07 per share in its upcoming report, which represents a year-over-year change of +22.5%. Revenues are expected to be $37.61 million, up 20% 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 Regenxbio, the consensus EPS estimate for the quarter has been revised 11.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RGNX 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 >>>>

Regenxbio is part of the Zacks Medical - Biomedical and Genetics industry. Cardiff Oncology (CRDF - Free Report) , another stock in the same industry, closed the last trading session 3.3% higher at $1.87. CRDF has returned 2.3% in the past month.

For Cardiff Oncology, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. This represents a change of -35% from what the company reported a year ago. Cardiff Oncology currently has a Zacks Rank of #3 (Hold).

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