Orchestra BioMed Holdings, Inc. Stock Jumps 7.3%: Will It Continue to Soar?

Orchestra BioMed Holdings, Inc. OBIO shares ended the last trading session 7.3% 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 12.8% gain over the past four weeks.

The sudden rise in the stock price has likely been driven by the growing optimism of investors regarding the potential of the company's pipeline. Orchestra BioMed Holdings is currently developing two late-stage flagship technologies designed to address large unmet needs associated with the treatment of hypertension and atherosclerotic artery disease in collaboration with leading medical device companies.

This company is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $1.16 million, up 25.5% 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 Orchestra BioMed Holdings, Inc., 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 OBIO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy).

Orchestra BioMed Holdings, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Alkermes ALKS, another stock in the same industry, closed the last trading session 0.4% lower at $24.95. ALKS has returned 4.4% in the past month.

Alkermes' consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $0.74. Compared to the company's year-ago EPS, this represents a change of +34.6%. Alkermes currently boasts a Zacks Rank of #3 (Hold).

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