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Strength Seen in Celldex (CLDX): Can Its 7.1% Jump Turn into More Strength?

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Celldex Therapeutics (CLDX - Free Report) shares ended the last trading session 7.1% higher at $32.45. 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 27.6% loss over the past four weeks.

The surge in the stock price is likely to be an outcome of the positive momentum built around the company's pipeline. The company is significantly progressing across pipelines in developing several immunotherapy technologies and cancer-targeting biologics. Celldex's lead pipeline candidate, barzolvolimab, is being evaluated in early clinical studies targeting various autoimmune diseases.

This biopharmaceutical company is expected to post quarterly loss of $0.63 per share in its upcoming report, which represents a year-over-year change of -28.6%. Revenues are expected to be $0.38 million, up 120.6% 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 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 #3 (Hold). 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, Intercept Pharmaceuticals , closed the last trading session 6.2% higher at $18.33. Over the past month, ICPT has returned 13%.

Intercept's consensus EPS estimate for the upcoming report has changed +7.5% over the past month to -$0.56. Compared to the company's year-ago EPS, this represents a change of +3.5%. Intercept currently boasts a Zacks Rank of #3 (Hold).


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