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Strength Seen in Repare Therapeutics Inc. (RPTX): Can Its 12.2% Jump Turn into More Strength?

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Repare Therapeutics Inc. (RPTX - Free Report) shares soared 12.2% in the last trading session to close at $12.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.3% gain over the past four weeks.

The sudden soaring of the stock price is attributable to the positive investors' mindset regarding the company's pipeline progress. Repare is currently devolping its oral ATR inhibitor, camonsertib, in mid-to-late-stage studies, in partnership with Roche. Roche recently included a camonsertib-based arm in its phase II TAPISTRY study in solid tumor cancers. Repare anticipates a $40 million milestone payment upon dosing of the first patient with camonsertib in the TAPISTRY study. If the study becomes registrational, Repare will be eligible to receive an additional $15 million milestone payment. Such milestones payments will provide the company with an influx of cash. Besides camonsertib, Repare is also evaluating another candidate, lunresertib, to treat solid tumors in several early-stage studies, as a monotherapy or in combinations. 

This company is expected to post quarterly loss of $0.86 per share in its upcoming report, which represents a year-over-year change of -150.3%. Revenues are expected to be $7.03 million, down 93.8% 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 Repare 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 RPTX 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 >>>>

Repare Therapeutics Inc. is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, NGM Biopharmaceuticals , finished the last trading session 0.8% higher at $1.23. NGM has returned -47.9% over the past month.

For NGM Biopharmaceuticals, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.40. This represents a change of +32.2% from what the company reported a year ago. NGM Biopharmaceuticals currently has a Zacks Rank of #3 (Hold).


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