Strength Seen in Foghorn Therapeutics (FHTX): Can Its 9.5% Jump Turn into More Strength?
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Foghorn Therapeutics Inc. (FHTX) shares rallied 9.5% in the last trading session to close at $9.72. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 43.2% gain over the past four weeks.
Last month, the company announced robust financial results for the second quarter of 2024. Studies on the company’s pipeline candidates for treating various oncology indications are progressing well. This might have been driving the share price rally.
This company is expected to post quarterly loss of $0.41 per share in its upcoming report, which represents a year-over-year change of -20.6%. Revenues are expected to be $7.01 million, down 59.9% 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 Foghorn Therapeutics, the consensus EPS estimate for the quarter has been revised 7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Foghorn Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, United Therapeutics (UTHR), closed the last trading session 0.6% lower at $339.12. Over the past month, UTHR has returned 5.6%.
For United Therapeutics , the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $6.33. This represents a change of +17.7% from what the company reported a year ago. United Therapeutics currently has a Zacks Rank of #3 (Hold).
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Foghorn Therapeutics Inc. (FHTX) : Free Stock Analysis Report
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