Kymera Therapeutics Surges 23.4%: Is This an Indication of Further Gains?

Kymera Therapeutics, Inc. KYMR shares ended the last trading session 23.4% higher at $39.44. 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 6.7% loss over the past four weeks.

Shares gained following the company's announcement that partner Sanofi intends to rapidly expand the ongoing mid-stage studies on KT-474 (SAR444656) toward pivotal studies. The candidate is in phase II studies for hidradenitis suppurativa and atopic dermatitis.  Sanofi informed Kymera about the decision to expand the study after a review of preliminary safety and efficacy data in these studies by an Independent Data Review Committee. The pipeline progress impressed investors.

This company is expected to post quarterly loss of $0.69 per share in its upcoming report, which represents a year-over-year change of -3%. Revenues are expected to be $11.71 million, down 29.1% 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 Kymera Therapeutics, 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 KYMR 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).

Kymera Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Shattuck Labs, Inc. STTK, finished the last trading session 4.5% higher at $3.71. STTK has returned -47% over the past month.

Shattuck Labs' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.41. Compared to the company's year-ago EPS, this represents a change of +18%. Shattuck Labs currently boasts a Zacks Rank of #3 (Hold).

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