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Omega Therapeutics, Inc. (OMGA) Surges 37.2%: Is This an Indication of Further Gains?

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Omega Therapeutics, Inc. (OMGA - Free Report) shares ended the last trading session 37.2% higher at $6.60. 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 47.3% loss over the past four weeks.

The sudden surge in the stock prices is attributable to the momentum built around Omega's pipeline, especially OTX-2002, an early stage candidate being evaluated for the treatment of hepatocellular carcinoma (HCC). Last November, the company dosed the first patient in the phase I/II MYCHELANGELO I study evaluating OTX-2002 in patients with relapsed or refractory HCC.

This company is expected to post quarterly loss of $0.62 per share in its upcoming report, which represents a year-over-year change of -40.9%. Revenues are expected to be $0.65 million, up 364.3% 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 Omega Therapeutics, Inc., 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 OMGA 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 >>>>

Omega Therapeutics, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Novavax (NVAX - Free Report) , another stock in the same industry, closed the last trading session 6.3% lower at $9.78. NVAX has returned -12% in the past month.

Novavax's consensus EPS estimate for the upcoming report has changed +3% over the past month to -$1.27. Compared to the company's year-ago EPS, this represents a change of +88.6%. Novavax currently boasts a Zacks Rank of #3 (Hold).


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