Recursion Pharmaceuticals (RXRX) shares ended the last trading session 8.9% higher at $8.34. 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 21.2% gain over the past four weeks.

The sudden rise in the stock price can be attributed to the positive investor mindset regarding the potential of Recursion’s early-stage clinical pipeline. The company leverages its proprietary AI-based drug discovery platform, Recursion OS, to develop novel best-in-class and first-in-class therapeutic candidates for oncology, rare disease and infectious disease indications.

This biotechnology company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $28.73 million, up 163.9% 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 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, Bioventus (BVS), closed the last trading session 3.8% lower at $10.27. Over the past month, BVS has returned 20.4%.

For Bioventus , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. This represents a change of +28.6% from what the company reported a year ago. Bioventus currently has a Zacks Rank of #4 (Sell).

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