Travere Therapeutics (TVTX) shares soared 37.2% in the last trading session to close at $42.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.5% gain over the past four weeks.
Travere Therapeutics’ stock surged after the FDA approved Filspari for a second rare kidney disease, making it the first treatment for focal segmental glomerulosclerosis (FSGS) without nephrotic syndrome and significantly expanding its market. The decision was backed by strong phase III data showing superior proteinuria reduction and kidney function benefits versus Avapro, reinforcing the drug’s clinical efficacy. With immediate availability and a broader addressable population of more than 100,000 U.S. patients across FSGS and primary IgA nephropathy, investors reacted positively to the drug’s enhanced commercial potential.
This drug developer is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of +40.4%. Revenues are expected to be $128.11 million, up 56.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Travere, the consensus EPS estimate for the quarter has been revised 73% 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 TVTX 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 >>>>
Travere belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Halozyme Therapeutics (HALO), closed the last trading session 0.5% higher at $67.31. Over the past month, HALO has returned 4.2%.
For Halozyme Therapeutics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.58. This represents a change of +42.3% from what the company reported a year ago. Halozyme Therapeutics currently has a Zacks Rank of #3 (Hold).
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Travere Therapeutics, Inc. (TVTX): Free Stock Analysis Report
Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).