Capricor (CAPR) Surges 5.3%: Is This an Indication of Further Gains?

Capricor Therapeutics (CAPR) shares soared 5.3% in the last trading session to close at $6.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% loss over the past four weeks.

The sharp rise in CAPR shares can be attributed to the company’s encouraging regulatory update on its Deramiocel program for Duchenne muscular dystrophy. Following a Type A meeting with the FDA, the company received guidance outlining a pathway toward a potential Biologics License Application. This development bolstered investor confidence, underscoring progress in advancing Deramiocel in a high-need market while highlighting regulatory momentum that could accelerate the drug’s time to market.

This biotechnology company is expected to post quarterly loss of $0.54 per share in its upcoming report, which represents a year-over-year change of -42.1%. Revenues are expected to be $2.4 million, up 6.2% 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 Capricor, 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 CAPR 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 >>>>

Capricor is a member of the Zacks Medical - Products industry. One other stock in the same industry, biote Corp. (BTMD), finished the last trading session 0.3% lower at $2.97. BTMD has returned -11.3% over the past month.

biote Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. Compared to the company's year-ago EPS, this represents a change of -84.9%. biote Corp. currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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