Eton Pharmaceuticals, Inc. (ETON) shares soared 6.7% in the last trading session to close at $23.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.5% gain over the past four weeks.
Eton Pharmaceuticals’ stock price gain can be attributed to the latest FDA approval for Desmoda (desmopressin acetate) oral solution for the management of central diabetes insipidus (arginine vasopressin deficiency) across all age groups. In addition, it secured the commercialization rights to Hemangeol, an orphan drug used for infantile hemangioma from Pierre Fabre Médicament, in the United States. With these additions, Eton has reached its milestone of ten commercial products, strengthening its position in the U.S. rare disease market.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +185.7%. Revenues are expected to be $21.5 million, up 24.4% 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 Eton Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 13% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ETON going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Eton Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. Iovance Biotherapeutics (IOVA), another stock in the same industry, closed the last trading session 1.6% lower at $3.63. IOVA has returned 28.6% in the past month.
For Iovance Biotherapeutics, the consensus EPS estimate for the upcoming report has changed +22.7% over the past month to -$0.17. This represents a change of +52.8% from what the company reported a year ago. Iovance Biotherapeutics currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).