Foghorn Therapeutics Inc. (FHTX) shares ended the last trading session 22.7% higher at $5.95. 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 11.3% loss over the past four weeks.

The sudden gain in the stock price can be attributed to the positive investor mindset regarding the company’s pipeline. Last week, Foghorn announced that its pre-clinical candidate, FHD-909, has been selected by Eli Lilly for clinical development under the December 2021 strategic collaboration agreement to create novel oncology medicines. Lilly plans to file an investigational new drug application to the FDA to begin clinical studies on FHD-909 in the second quarter of 2024, with a primary focus on the treatment of patients with BRG1 mutated non-small cell lung cancer.

This company is expected to post quarterly loss of $0.75 per share in its upcoming report, which represents a year-over-year change of -8.7%. Revenues are expected to be $4.91 million, up 17.4% 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 Foghorn Therapeutics 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 FHTX 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 >>>>

Foghorn Therapeutics Inc. is part of the Zacks Medical – Drugs industry. Organogenesis (ORGO), another stock in the same industry, closed the last trading session 0.8% higher at $3.65. ORGO has returned -10% in the past month.

Organogenesis’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company’s year-ago EPS, this represents a change of -116.7%. Organogenesis currently boasts a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source: Nasdaq

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