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BioCryst (BCRX) Soars 6.1%: Is Further Upside Left in the Stock?

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BioCryst Pharmaceuticals (BCRX - Free Report) shares ended the last trading session 6.1% higher at $6.81. 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 17.2% loss over the past four weeks.

BioCryst Pharmaceuticals’ stock likely surged following its $700 million agreement to acquire Astria Therapeutics. Subject to closing, the deal will add ATXS’ lead hereditary angioedema (HAE) candidate, navenibart, a long-acting injectable therapy, to BCRX’s pipeline, enhancing its leadership in the HAE market. Investors appear encouraged by the potential for double-digit revenue growth, profit accretion, and rapid market adoption post-launch, as well as the strategic fit with the company’s existing commercialization platform. The sizable premium offered on ATXS shares also underscores the high strategic value of the acquisition.

This drugmaker is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +185.7%. Revenues are expected to be $161.15 million, up 37.6% 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 BioCryst, the consensus EPS estimate for the quarter has been revised 4.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BCRX 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 >>>>

BioCryst is part of the Zacks Medical - Drugs industry. Ironwood Pharmaceuticals (IRWD - Free Report) , another stock in the same industry, closed the last trading session 8.8% higher at $1.61. IRWD has returned 13.9% in the past month.

Ironwood's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. Compared to the company's year-ago EPS, this represents a change of +350%. Ironwood currently boasts a Zacks Rank of #1 (Strong Buy).


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