4D Molecular Therapeutics (FDMT) Moves 11.1% Higher: Will This Strength Last?
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4D Molecular Therapeutics, Inc. FDMT shares soared 11.1% in the last trading session to close at $25.79. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.6% loss over the past four weeks.
Investors are bullish on the stock due to the recent pipeline progress. Last month, the FDA cleared the company’s investigational new drug application or 4D-175, an R100 vector-based intravitreal genetic medicine, for the treatment of patients with geographic atrophy. Earlier, the company presented positive data on its lead candidate, 4D-150, in wet age-related macular degeneration.
This company is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of +6.5%. Revenues are expected to be $1.9 million, up 691.7% 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 4D Molecular Therapeutics, 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 FDMT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
4D Molecular Therapeutics is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Journey Medical Corporation (DERM), finished the last trading session 3.1% higher at $5.68. DERM has returned -7.2% over the past month.
Journey Medical's consensus EPS estimate for the upcoming report has changed +15.8% over the past month to -$0.15. Compared to the company's year-ago EPS, this represents a change of +67.4%. Journey Medical currently boasts a Zacks Rank of #5 (Strong Sell).
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