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Allogene Therapeutics (ALLO) Moves 16.4% Higher: Will This Strength Last?

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Allogene Therapeutics (ALLO - Free Report) shares soared 16.4% in the last trading session to close at $10.96. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.8% gain over the past four weeks.

The rise in share prices is attributable to positive investor expectations for Allogene’s pipeline of allogenic CAR-T therapies. The company intends to start a pivotal phase II portion of the ALPHA2 study by mid-2022 which will evaluate ALLO-501A, one of the company’s most advanced candidates targeting non-Hodgkin lymphoma (NHL)

This immuno-oncology company is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -15.1%. Revenues are expected to be $0.08 million, up 100% 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 Allogene Therapeutics, 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 ALLO 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 >>>>

Allogene Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. MannKind (MNKD - Free Report) , another stock in the same industry, closed the last trading session 6.6% higher at $3.56. MNKD has returned -4.8% in the past month.

MannKind's consensus EPS estimate for the upcoming report has changed -3.7% over the past month to -$0.09. Compared to the company's year-ago EPS, this represents a change of -80%. MannKind currently boasts a Zacks Rank of #3 (Hold).


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