Axsome Therapeutics (AXSM) shares soared 4.2% in the last trading session to close at $101.67. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.4% loss over the past four weeks.

The stock surged in response to the broader market rally after President Trump announced a 90-day pause on the sweeping tariffs against non-retaliating countries.

This biopharmaceutical company is expected to post quarterly loss of $1.25 per share in its upcoming report, which represents a year-over-year change of -14.7%. Revenues are expected to be $119.74 million, up 59.7% 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 Axsome, the consensus EPS estimate for the quarter has been revised 6.8% 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 AXSM 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 >>>>

Axsome belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Emergent Biosolutions (EBS), closed the last trading session 9.6% higher at $4.69. Over the past month, EBS has returned -22.6%.

For Emergent Biosolutions , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.71. This represents a change of +20.3% from what the company reported a year ago. Emergent Biosolutions currently has a Zacks Rank of #3 (Hold).

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Axsome Therapeutics, Inc. (AXSM) : Free Stock Analysis Report

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

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