Stoke Therapeutics Shares Surge as Investors Bet on Pipeline Progress

Stoke Therapeutics, Inc. (STOK) saw its shares climb 12% to $8.61 in the last trading session. This increase was fueled by above-average trading volumes, especially notable given the stock’s 5.6% decline over the preceding four weeks. Investors are becoming increasingly optimistic about the company’s advancement of its pipeline candidate zorevunersen, aimed at treating Dravet syndrome.

Upcoming Earnings Report: What to Expect

Looking ahead, Stoke Therapeutics is projected to report a quarterly loss of $0.37 per share, representing a year-over-year improvement of 35.1%. Revenue forecasts suggest that the company will generate $10.64 million, a significant 152% increase from the same quarter last year. While these growth expectations hint at potential strength for the stock, research highlights that trends in earnings estimate revisions often correlate strongly with short-term stock price movements.

Earnings Estimate Trends and Stock Outlook

For Stoke Therapeutics, the consensus EPS estimate has been reduced by 333.8% over the last month. Such negative revisions typically do not bode well for stock price appreciation. Investors should monitor STOK closely to see if this recent share price boost can translate into sustained strength moving forward.

Industry Context and Comparisons

Currently, the stock holds a Zacks Rank of #3 (Hold). Stoke operates within the Zacks Medical – Biomedical and Genetics sector. In the same space, XOMA Royalty (XOMA) reported a 4.3% rise in its stock price, closing at $22.09. Over the past month, XOMA saw a return of 1.4%.

XOMA Royalty: Earnings Estimates

XOMA’s consensus EPS estimate for its upcoming report has remained stable at -$0.26, indicating a year-over-year change of 69.8%. Like Stoke, XOMA also carries a Zacks Rank of #3 (Hold).

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Stoke Therapeutics, Inc. (STOK): Free Stock Analysis report.

XOMA Royalty Corporation (XOMA): Free Stock Analysis report.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.