Denali Therapeutics Inc. DNLI shares ended the last trading session 9.7% higher at $23.53. 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 5.2% loss over the past four weeks.

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

The FDA recently selected its experimental candidate, DNL126, in support of clinical trials advancing the rare disease therapeutics Pilot Program. The pipeline progress has been encouraging as well.

This company is expected to post quarterly loss of $0.68 per share in its upcoming report, which represents a year-over-year change of -152.3%. Revenues are expected to be $21.2 million, down 92.8% 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 Denali Therapeutics, the consensus EPS estimate for the quarter has been revised 2.3% 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Amarin (AMRN), closed the last trading session 0.6% higher at $0.79. Over the past month, AMRN has returned 13.7%.

For Amarin , the consensus EPS estimate for the upcoming report has changed +4.8% over the past month to -$0.05. This represents a change of -350% from what the company reported a year ago. Amarin currently has a Zacks Rank of #3 (Hold).

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