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Cytokinetics (CYTK) Soars 6.1%: Is Further Upside Left in the Stock?

Cytokinetics (CYTK) shares soared 6.1% in the last trading session to close at $43.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.8% gain over the past four weeks.

The company's share price has been rising for the past few days following the submission of additional data requested by the FDA related to a new drug application for its pipeline candidate, omecamtiv mecarbil, as a potential treatment for heart failure with reduced ejection fraction.

This biopharmaceutical company is expected to post quarterly loss of $1.04 per share in its upcoming report, which represents a year-over-year change of -20.9%. Revenues are expected to be $3.44 million, up 21.3% 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 Cytokinetics, 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 CYTK 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 >>>>

Cytokinetics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Kiniksa Pharmaceuticals, Ltd. (KNSA), finished the last trading session 10.5% higher at $10.08. KNSA has returned 7.8% over the past month.

For Kiniksa Pharmaceuticals, Ltd., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.43. This represents a change of +29.5% from what the company reported a year ago. Kiniksa Pharmaceuticals, Ltd. currently has a Zacks Rank of #3 (Hold).

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