Capricor Therapeutics (CAPR) shares ended the last trading session 5.7% higher at $5.72. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 46.6% gain over the past four weeks.
The company’s lead candidate, CAP-1002 is being developed for treating Duchenne muscular dystrophy and the cytokine storm associated with COVID-19. This might have been driving the rally. Moreover, its efforts to develop transformative cell and exosome-based therapeutics and vaccines for treating a broad spectrum of diseases, is also a positive.
This biotechnology company is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $0.21 million, up 320% 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 Capricor, 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 CAPR 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
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