Praxis Precision Medicines, Inc. (PRAX) shares ended the last trading session 8.4% higher at $66.30. 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 0.7% gain over the past four weeks.

The recent surge in the stock price is driven by positive investor expectations regarding the company's pipeline. Praxis is currently assessing its lead candidate, ulixacaltamide, in two separate phase III studies under its Essential3 program for the treatment of essential tremor. Top-line results from both studies are expected soon, and if the data is favorable, Praxis plans to submit a new drug application seeking approval for ulixacaltamide in 2025. Other pipeline programs include PRAX-628 for focal onset seizures and relutrigine (PRAX-562) for SCN2A and SCN8A developmental and epileptic encephalopathy.

This company is expected to post quarterly loss of $2.01 per share in its upcoming report, which represents a year-over-year change of +25.6%. Revenues are expected to be $0.53 million, up 12.1% 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 Praxis Precision Medicines, 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 PRAX 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 >>>>

Praxis Precision Medicines belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Gilead Sciences (GILD), closed the last trading session 0.7% lower at $84.17. Over the past month, GILD has returned 7.1%.

Gilead's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.66. Compared to the company's year-ago EPS, this represents a change of -27.5%. Gilead currently boasts a Zacks Rank of #3 (Hold).

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Praxis Precision Medicines, Inc. (PRAX) : Free Stock Analysis Report