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Strength Seen in IDEAYA Biosciences (IDYA): Can Its 15.3% Jump Turn into More Strength?

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IDEAYA Biosciences, Inc. (IDYA - Free Report) shares rallied 15.3% in the last trading session to close at $39.51. 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 9.9% loss over the past four weeks.

The sudden rise in the stock price was observed after IDEAYA announced positive clinical data from its phase II study evaluating the 30 mg monotherapy expansion dose of IDE397 to treat MTAP-deletion urothelial and non-small cell lung cancer (NSCLC) patients The phase II clinical data for IDE397, based on 18 evaluable patients with MTAP deletion, includes seven with urothelial cancer, four with adenocarcinoma NSCLC, and seven with squamous NSCLC. The IDE397 study data demonstrates important clinical proof-of-concept in MTAP-deletion solid tumors to deliver meaningful responses and encouraging preliminary durability of response, with a convenient 30mg once-a-day tablet. 

This company is expected to post quarterly loss of $0.56 per share in its upcoming report, which represents a year-over-year change of -12%. Revenues are expected to be $6.4 million, up 80.8% 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 IDEAYA Biosciences, 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 IDYA 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 >>>>

IDEAYA Biosciences is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Lexicon Pharmaceuticals (LXRX - Free Report) , finished the last trading session 4.2% lower at $1.60. LXRX has returned -4.6% over the past month.

For Lexicon, the consensus EPS estimate for the upcoming report has changed +2.9% over the past month to -$0.18. This represents a change of +18.2% from what the company reported a year ago. Lexicon currently has a Zacks Rank of #3 (Hold).


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