XOMA Royalty (XOMA) Soars 9% - Can Its Strength Last?

TorinDigital Marketing2025-06-262130

XOMA Royalty (XOMA) shares soared 9% in the last trading session to close at $26.22. The move was backed by solid volume, with far more shares changing hands than in a normal session. This compares to the stock's 3.2% loss over the past four weeks.

The rise in the stock price can be attributed to the positive investor mindset regarding Xoma's extensive and growing portfolio of assets, defined as the right to receive potential future payments related to the advancement of an underlying therapeutic candidate. Last month, the company reported robust financial results for the first quarter of 2025.

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 XOMA Royalty, the consensus EPS estimate for the quarter has been revised 33.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation.

The stock currently carries a Zacks Rank #3 (Hold). Another stock from the same industry, Compugen (CGEN), closed the last trading session 0.6% lower at $1.63. Over the past month, CGEN has returned 13.1%.

Compugen's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. Compared to the company's year-ago EPS, this represents a change of -250%. Compugen currently boasts a Zacks Rank of #3 (Hold).

In conclusion, XOMA Royalty's recent surge in stock price can be attributed to its strong portfolio of assets and positive investor mindset. Keep an eye on this stock going forward to see if this recent jump can turn into more strength down the road.

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