Precigen (PGEN) Soars 6.3%: Is Further Upside Left in the Stock?

Precigen, Inc. (PGEN) shares soared 6.3% in the last trading session to close at $8.56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.4% gain over the past four weeks.

The sudden price rise can be attributed to growing investor confidence related to sales uptake of the company’s sole marketed drug, Papzimeos (zopapogene imadenovec-drba), which is currently the first and only FDA-approved therapy for adults with recurrent respiratory papillomatosis (RRP).

This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +181.8%. Revenues are expected to be $76.43 million, up 2517.5% 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 Precigen, 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 PGEN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Precigen is part of the Zacks Medical - Biomedical and Genetics industry. Nurix Therapeutics, Inc. (NRIX), another stock in the same industry, closed the last trading session 0.2% higher at $23.71. NRIX has returned -9.1% in the past month.

For Nurix Therapeutics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.56. This represents a change of +45.6% from what the company reported a year ago. Nurix Therapeutics currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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