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ChemoCentryx (CCXI) Soars 5.4%: Is Further Upside Left in the Stock?

ChemoCentryx (CCXI) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more...

This story originally appeared on Zacks

ChemoCentryx CCXI shares ended the last trading session 5.4% higher at $19.60. 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 16.8% gain over the past four weeks.

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Following the approval of its vasculitis drug, avacopan, in Japan last week, investors are presumably anticipating a positive update from the FDA relating to the approval of the drug, which is expected soon. The company's share price is likely to have surged in anticipation of a potential approval for avacopan in the United States.

This biopharmaceutical company is expected to post quarterly loss of $0.47 per share in its upcoming report, which represents a year-over-year change of -34.3%. Revenues are expected to be $9.42 million, up 85.1% 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 ChemoCentryx, the consensus EPS estimate for the quarter has been revised 7.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CCXI 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 >>>>

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