Denali Therapeutics Inc. DNLI shares ended the last trading session 10.1% higher at $30.77. 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 18.1% gain over the past four weeks.

Denali is developing a broad portfolio of product candidates engineered to cross the blood-brain barrier for the treatment of neurodegenerative and lysosomal storage diseases.  The recent upward price trajectory can be attributed to positive updates.

Denali’s meeting with the Center for Drug Evaluation and Research (“CDER”) division of the FDA for the advancement of pipeline candidate tividenofusp alfa (DNL310) was successful. The meeting with CDER outlined a path for Denali to file a biologics license application seeking accelerated approval of tividenofusp alfa for the treatment of MPS II and its subsequent conversion to full approval.

Earlier, the FDA has selected its experimental candidate, DNL126, in support of clinical trials advancing the rare disease therapeutics Pilot Program.

This company is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of +15.3%. Revenues are expected to be $21.2 million, up 1569.3% 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 Denali Therapeutics, the consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DNLI 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 >>>>

Denali Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Blueprint Medicines (BPMC), another stock in the same industry, closed the last trading session 5.7% higher at $88.90. BPMC has returned -12% in the past month.

For Blueprint Medicines , the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to -$1.01. This represents a change of +54.1% from what the company reported a year ago. Blueprint Medicines currently has a Zacks Rank of #3 (Hold).

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