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Recursion Pharmaceuticals (RXRX) Soars 7.4%: Is Further Upside Left in the Stock?

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Recursion Pharmaceuticals (RXRX - Free Report) shares rallied 7.4% in the last trading session to close at $11.93. 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 47.4% gain over the past four weeks.

Last week, Recursion signed an agreement with Germany’s Bayer AG to in-license a new chemical entity targeting fibrotic diseases from the companies’ fibrosis research collaboration. This might have driven the share price rally.

This biotechnology company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -45.2%. Revenues are expected to be $10.05 million, down 26.5% 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 Recursion Pharmaceuticals, 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 RXRX 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 >>>>

Recursion Pharmaceuticals is part of the Zacks Medical - Drugs industry. Catalent (CTLT - Free Report) , another stock in the same industry, closed the last trading session 5.3% higher at $45.73. CTLT has returned 16% in the past month.

For Catalent, the consensus EPS estimate for the upcoming report has changed +1.6% over the past month to -$0.03. This represents a change of -104.5% from what the company reported a year ago. Catalent currently has a Zacks Rank of #3 (Hold).


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