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Verve Therapeutics (VERV) Surges 28.0%: Is This an Indication of Further Gains?

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Verve Therapeutics (VERV - Free Report) shares rallied 28% in the last trading session to close at $12.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.1% loss over the past four weeks.

Earlier this week, the company expanded its existing partnership with pharma giant Eli Lilly, per which the latter acquired rights to Verve’s lead cardiovascular in vivo gene editing programs targeting PCSK9 and ANGPTL3, along with a third undisclosed cardiovascular disease target from Beam Therapeutics. This might have driven the share price rally.

This biotechnology firm is expected to post quarterly loss of $0.91 per share in its upcoming report, which represents a year-over-year change of -15.2%. Revenues are expected to be $3.04 million, up 226.3% 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 Verve Therapeutics, 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 VERV 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 >>>>

Verve Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Ocular Therapeutix (OCUL - Free Report) , closed the last trading session 15.4% higher at $2.85. Over the past month, OCUL has returned -16.3%.

Ocular Therapeutix's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. Compared to the company's year-ago EPS, this represents a change of +10%. Ocular Therapeutix currently boasts a Zacks Rank of #3 (Hold).


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