Relay Therapeutics, Inc. (RLAY) shares ended the last trading session 5.4% higher at $10.69. 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 17.2% gain over the past four weeks.
The sharp rise in the share price likely reflects growing investor optimism about the potential of Relay Therapeutics’ clinical pipeline. RLAY is developing zovegalisib (RLY-2608), a mutant-selective PI3Kα inhibitor, for PI3Kα-mutated HR+/HER2- advanced breast cancer. The candidate is being evaluated in the phase III ReDiscover-2 study in combination with AstraZeneca’s Faslodex (fulvestrant) for second-line treatment and has shown potential improvements in tolerability and progression-free survival compared to standard-of-care therapies. RLAY is also studying triplet regimens with CDK4/6 inhibitors for earlier-line use and evaluating the drug in an early-stage study for PIK3CA-driven vascular anomalies.
This company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of +21.7%. Revenues are expected to be $15.35 million, up 99.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Relay Therapeutics, the consensus EPS estimate for the quarter has been revised 15.7% 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 RLAY 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 >>>>
Relay Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Ocular Therapeutix (OCUL), closed the last trading session 0.7% lower at $9.87. Over the past month, OCUL has returned 5.4%.
For Ocular Therapeutix, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.32. This represents a change of +13.5% from what the company reported a year ago. Ocular Therapeutix currently has a Zacks Rank of #3 (Hold).
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Relay Therapeutics, Inc. (RLAY): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).