Enanta Pharmaceuticals (ENTA) shares soared 5.3% in the last trading session to close at $15.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.8% gain over the past four weeks.
Enanta Pharmaceuticals’ share price gain can likely be attributed to the growing investor sentiment in the company’s advancing pipeline, particularly in respiratory syncytial virus (RSV) and immunology programs. Enanta is now conducting phase III-enabling activities for its lead RSV candidate, zelicapavir, with the FDA while also exploring partnership opportunities. Recent progress in the company’s immunology pipeline, including the dosing of the first participant in the phase I study of EDP-978, a KIT inhibitor being developed for urticaria and other type II inflammatory diseases, also boosted investor confidence.
This biotechnology company is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of +56.6%. Revenues are expected to be $17.56 million, up 17.6% 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 Enanta 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 ENTA 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 >>>>
Enanta Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. MeiraGTx Holdings PLC (MGTX), another stock in the same industry, closed the last trading session 1.5% higher at $9.9. MGTX has returned 2.5% in the past month.
MeiraGTx's consensus EPS estimate for the upcoming report has changed +6.5% over the past month to -$0.43. Compared to the company's year-ago EPS, this represents a change of +15.7%. MeiraGTx currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).