Recursion Pharmaceuticals (RXRX) Moves 8.9% Higher: Will This Strength Last?

Recursion Pharmaceuticals (RXRX) shares ended the last trading session 8.9% higher at $7.49. 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% loss over the past four weeks.The sudden rise in the stock price was observed after President Donald Trump announced a $500 billion project to develop and expand AI infrastructure, at his inauguration event on Monday. Investors likely anticipate that Recursion, being a Tech-Bio company that utilizes AI models in drug discovery, would benefit from the project.  This biotechnology company is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $26.7 million, up 145.2% 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 Recursion Pharmaceuticals, 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 RXRX 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 >>>>Recursion Pharmaceuticals belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Enanta Pharmaceuticals (ENTA), closed the last trading session 1.2% higher at $5.18. Over the past month, ENTA has returned -16.1%.Enanta Pharmaceuticals' consensus EPS estimate for the upcoming report has changed +3.5% over the past month to -$1.16. Compared to the company's year-ago EPS, this represents a change of +26.6%. Enanta Pharmaceuticals currently boasts a Zacks Rank of #3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Recursion Pharmaceuticals, Inc. (RXRX): Free Stock Analysis Report Enanta Pharmaceuticals, Inc. (ENTA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks