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Acadia (ACAD) Surges 8.3%: Is This an Indication of Further Gains?

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Acadia Pharmaceuticals (ACAD - Free Report) shares soared 8.3% in the last trading session to close at $25.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.8% loss over the past four weeks.

The sudden soaring of the stock price can be attributed to the positive investor expectations regarding the performance of its two FDA-approved products - Nuplazid (for Parkinson's disease psychosis) and Daybue (for Rett Syndrome). Acadia is also conducting several additional studies on Nuplazid targeting. different types of neurological and psychiatric disorders. Acaida's pipeline beyond its marketed products is also progressing steadily.

This drugmaker is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -164.7%. Revenues are expected to be $191.5 million, up 46.5% 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 Acadia, 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 ACAD 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 >>>>

Acadia is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Cue Biopharma, Inc. (CUE - Free Report) , finished the last trading session 3.4% higher at $2.44. CUE has returned -17.2% over the past month.

Cue Biopharma, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.30. Compared to the company's year-ago EPS, this represents a change of +3.2%. Cue Biopharma, Inc. currently boasts a Zacks Rank of #3 (Hold).


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