Strength Seen in Immatics (IMTX): Can Its 5.3% Jump Turn into More Strength?

Immatics IMTX shares ended the last trading session 5.3% higher at $6.32. 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 33.4% loss over the past four weeks.

The rise in share prices is attributable to positive investor expectations for Immatics’ pipeline candidates targeting cancer indications. Earlier this week, the company initiated an early-stage clinical study which will evaluate its most advanced TCR Bispecific candidate, IMA401, for patients with recurrent and/or refractory solid tumors.

This company is expected to post quarterly earnings of $1.86 per share in its upcoming report, which represents a year-over-year change of +553.7%. Revenues are expected to be $151.68 million, up 1600.5% 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 Immatics, 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 IMTX 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 >>>>

Immatics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Syros Pharmaceuticals, Inc. SYRS, closed the last trading session 2.5% higher at $0.84. Over the past month, SYRS has returned -17.1%.

Syros Pharmaceuticals, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.48. Compared to the company's year-ago EPS, this represents a change of -108.7%. Syros Pharmaceuticals, Inc. currently boasts a Zacks Rank of #3 (Hold).

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