Avidity Biosciences, Inc. (RNA) shares soared 11.3% in the last trading session to close at $29.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.4% loss over the past four weeks.

The sudden surge in the stock price can be attributed to the positive investor mindset regarding the company's distinguished rare diseases pipeline. Avidity is currently evaluating three investigational candidates in separate mid to late-stage clinical studies for three different muscle disease indications. 

This company is expected to post quarterly loss of $0.88 per share in its upcoming report, which represents a year-over-year change of -11.4%. Revenues are expected to be $2.95 million, down 16.7% 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 Avidity Biosciences, 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 RNA 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 >>>>

Avidity Biosciences belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Mirum Pharmaceuticals, Inc. (MIRM), closed the last trading session 2.2% higher at $45. Over the past month, MIRM has returned -2.6%.

Mirum Pharmaceuticals' consensus EPS estimate for the upcoming report has changed -3.2% over the past month to -$0.37. Compared to the company's year-ago EPS, this represents a change of +31.5%. Mirum Pharmaceuticals currently boasts a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Avidity Biosciences, Inc. (RNA) : Free Stock Analysis Report

Mirum Pharmaceuticals, Inc. (MIRM) : Free Stock Analysis Report

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

Zacks Investment Research