Nektar Therapeutics (NKTR) shares soared 18.3% in the last trading session to close at $100.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.5% gain over the past four weeks.
The stock rallied after the company announced new data from a blinded 16-week treatment extension period of its phase IIb REZOLVE-AA study, evaluating rezpeg in patients with severe-to-very-severe alopecia areata. The 52-week top-line data from the 16-week blinded treatment extension of the REZOLVE-AA study demonstrated deepening of responses in severe-to-very-severe alopecia areata following treatment with rezpeg.
This biopharmaceutical company is expected to post quarterly loss of $1.73 per share in its upcoming report, which represents a year-over-year change of +47.6%. Revenues are expected to be $11.39 million, up 8.9% 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 Nektar, the consensus EPS estimate for the quarter has been revised 10.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NKTR 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 >>>>
Nektar is part of the Zacks Medical - Drugs industry. Ironwood Pharmaceuticals (IRWD), another stock in the same industry, closed the last trading session 0.2% lower at $4.42. IRWD has returned 45.7% in the past month.
For Ironwood, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of +150% from what the company reported a year ago. Ironwood currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).