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Strength Seen in Exagen (XGN): Can Its 29.4% Jump Turn into More Strength?

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Exagen Inc. (XGN - Free Report) shares soared 29.4% in the last trading session to close at $5.02. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.5% gain over the past four weeks.

The recent surge in Exagen shares can be attributed to the ongoing positive trend that the company is witnessing post its announcement of a solid fourth quarter and full year 2024 preliminary results in January. XGN also received conditional approval from the New York State Department of Health for its new systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA) biomarker assays. Also, XGN is witnessing a positive earnings estimate revision as loss estimate for 2025 improved from 70 cents to 58 cents in the past 30 days. As a result, investors are anticipating continued growth in earnings and revenue, which is expected to drive the stock’s upward momentum in the coming quarters.

This company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of +12.9%. Revenues are expected to be $13.5 million, down 2% 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 Exagen, 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 XGN 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 >>>>

Exagen is part of the Zacks Medical - Products industry. Capricor Therapeutics (CAPR - Free Report) , another stock in the same industry, closed the last trading session 0.7% lower at $15.07. CAPR has returned 1.2% in the past month.

Capricor's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.31. Compared to the company's year-ago EPS, this represents a change of -1450%. Capricor currently boasts a Zacks Rank of #2 (Buy).


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