Avidity Biosciences, Inc. (RNA) shares ended the last trading session 15% higher at $12.04. 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 12.2% gain over the past four weeks.

The sudden surge in the stock price can be attributed to the positive investor mindset regarding the company's distinguished rare diseases pipeline. Avidity is currently evaluating three investigational candidates in separate early to mid-stage clinical stages for three different muscle disease indications.

This company is expected to post quarterly loss of $0.54 per share in its upcoming report, which represents a year-over-year change of +38.6%. Revenues are expected to be $32.08 million, up 1058.3% 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 Avidity Biosciences, Inc., 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 RNA 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 >>>>

Avidity Biosciences, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. HOOKIPA Pharma Inc. (HOOK), another stock in the same industry, closed the last trading session 1.3% lower at $0.70. HOOK has returned -5.3% in the past month.

For HOOKIPA Pharma Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.20. This represents a change of -17.7% from what the company reported a year ago. HOOKIPA Pharma Inc. currently has a Zacks Rank of #4 (Sell).

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