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Precision BioSciences (DTIL) Moves 11.1% Higher: Will This Strength Last?

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Precision BioSciences (DTIL - Free Report) shares soared 11.1% in the last trading session to close at $6.5. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.3% gain over the past four weeks.

The sudden rise in the stock price can be attributed to the positive investor mindset regarding the potential of Precision BioSciences’ clinical-stage pipeline. The company is currently developing its lead, fully owned in vivo gene editing therapy, PBGENE-HBV, aimed at curing chronic hepatitis B, in an early-stage study. DTIL’s fully owned pipeline comprises several other gene therapy programs, which are currently undergoing preclinical evaluation. The company’s clinical-stage pipeline comprises a partnered candidate, ECUR-506, which is being developed by iECURE as an in vivo gene editing program in a first-in-human phase I/II OTC-HOPE study for potentially treating neonatal onset ornithine transcarbamylase deficiency.

This genome editing company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of +89.1%. Revenues are expected to be $11.1 million, up 1813.8% 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 Precision 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 DTIL 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 >>>>

Precision BioSciences is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, CervoMed Inc. (CRVO - Free Report) , finished the last trading session 1.5% lower at $8.1. CRVO has returned 1.4% over the past month.

CERVOMED INC's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.68. Compared to the company's year-ago EPS, this represents a change of -23.6%. CERVOMED INC currently boasts a Zacks Rank of #4 (Sell).


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