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Celldex (CLDX) Surges 9%: Is This an Indication of Further Gains?

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Celldex Therapeutics (CLDX - Free Report) shares ended the last trading session 9% higher at $24.75. 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 4% loss over the past four weeks.

This rise was most likely attributable to the recovery of the share prices of Celldex after they declined in the last week when management announced interim data from its ongoing phase Ib study evaluating its lead pipeline candidate, barzolvolimab, for treating patients with moderate to severe chronic spontaneous urticaria (“CSU”) refractory to antihistamines. Though the data was favorable, four patients reported adverse events of neutrophil decrease.

This biopharmaceutical company is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of -26.5%. Revenues are expected to be $0.35 million, down 89.9% 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 Celldex, 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 CLDX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Celldex belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Puma Biotech (PBYI - Free Report) , closed the last trading session 4.3% lower at $2.66. Over the past month, PBYI has returned 16.3%.

For Puma Biotech, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of +115.4% from what the company reported a year ago. Puma Biotech currently has a Zacks Rank of #3 (Hold).


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