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Wave Life Sciences (WVE) Surges 10.9%: Is This an Indication of Further Gains?

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Wave Life Sciences (WVE - Free Report) shares rallied 10.9% in the last trading session to close at $5.10. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.9% gain over the past four weeks.

The sudden surge in the stock price can be attributed to the positive investor mindset regarding the company’s pipeline development. Wave’s differentiated pipeline spans multiple modalities including RNA editing, splicing, RNA interference, and antisense silencing to treat diseases originating in muscle, liver and the central nervous system.

This biopharmaceutical company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +55.3%. Revenues are expected to be $21.79 million, up 1657.3% 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 Wave Life Sciences, 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 WVE 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 >>>>

Wave Life Sciences is part of the Zacks Medical - Biomedical and Genetics industry. TELA Bio, Inc. (TELA - Free Report) , another stock in the same industry, closed the last trading session 1.7% higher at $7.01. TELA has returned -1.4% in the past month.

TELA Bio, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.44. Compared to the company's year-ago EPS, this represents a change of +15.4%. TELA Bio, Inc. currently boasts a Zacks Rank of #3 (Hold).

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