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ImmunoGen (IMGN) Soars 5.7%: Is Further Upside Left in the Stock?

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ImmunoGen shares ended the last trading session 5.7% higher at $31.23. 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 0.7% loss over the past four weeks.

The stock rallied as optimism about the drug/biotech sector’s growth in 2024 rose.

This drug developer is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +156.5%. Revenues are expected to be $130.31 million, up 216.5% 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 ImmunoGen, 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 IMGN going forward to see if this recent jump can turn into more strength down the road.

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

ImmunoGen belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Collegium Pharmaceutical (COLL - Free Report) , closed the last trading session 0.4% higher at $33.34. Over the past month, COLL has returned 1.8%.

For Collegium Pharmaceutical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.40. This represents a change of +28.4% from what the company reported a year ago. Collegium Pharmaceutical currently has a Zacks Rank of #3 (Hold).

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