Recursion Pharmaceuticals (RXRX) shares soared 27.7% in the last trading session to close at $5.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.1% loss over the past four weeks.

Earlier this month, the company announced that it has dosed the first patient in its early-stage study of investigational candidate, REC-3565, for treating relapsed or refractory (R/R) B-cell lymphomas. REC-3565 is a selective MALT1 inhibitor developed using Recursion Pharmaceuticals’ proprietary AI-driven Recursion OS platform. The growing optimism related to this development might have driven the recent share price rally.

This biotechnology company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of -12.8%. Revenues are expected to be $20.15 million, up 46.1% 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 Recursion Pharmaceuticals, 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 RXRX 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 >>>>

Recursion Pharmaceuticals belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Aquestive Therapeutics (AQST), closed the last trading session 2.1% higher at $2.47. Over the past month, AQST has returned -11%.

Aquestive Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.17. Compared to the company's year-ago EPS, this represents no change. Aquestive Therapeutics currently boasts a Zacks Rank of #3 (Hold).

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