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Exagen (XGN) Soars 5.5%: Is Further Upside Left in the Stock?

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Exagen Inc. (XGN - Free Report) shares soared 5.5% in the last trading session to close at $7.32. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.7% loss over the past four weeks.

The sharp upsurge in XGN shares can be attributed to positive market sentiment following bullish analyst coverage and growing confidence in Exagen’s clinical testing platform. On July 23, Craig-Hallum initiated coverage with a Buy rating and a $12 price target, implying over 70% upside. The firm highlighted the strength of Exagen’s AVISE CTD test, which has shown significantly improved diagnostic accuracy for autoimmune diseases like lupus and rheumatoid arthritis. This fresh endorsement, coupled with strong recent trading momentum and rising investor optimism around the company’s test expansion and leadership enhancements, helped fuel a sharp rally in the stock.

This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -12.5%. Revenues are expected to be $15.4 million, up 2.3% 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 Exagen, 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 XGN 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 >>>>

Exagen belongs to the Zacks Medical - Products industry. Another stock from the same industry, Quanterix Corporation (QTRX - Free Report) , closed the last trading session 3.3% higher at $5.69. Over the past month, QTRX has returned -6.6%.

Quanterix's consensus EPS estimate for the upcoming report has changed -18.8% over the past month to -$0.41. Compared to the company's year-ago EPS, this represents a change of -64%. Quanterix currently boasts a Zacks Rank of #3 (Hold).


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