Sutro Biopharma, Inc. (STRO) shares soared 7.4% in the last trading session to close at $25.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.1% loss over the past four weeks.
Sutro Biopharma’s stock price surge is likely tied to the growing investors' confidence in the pipeline developments. The company is advancing a next-generation ADC pipeline led by STRO-004, a Tissue Factor–targeting candidate in early clinical development with key data expected in 2026, making it the company’s primary value driver. Beyond this lead asset, STRO-006 is set to enter the clinic in 2026, and STRO-227 (a dual-payload ADC) is on track for IND submission the same year. Parallelly, its collaboration with Astellas Pharma is progressing well, with one dual-payload ADC program already in clinical trials and another advancing through IND-enabling studies, triggering milestone payments.
This company is expected to post quarterly loss of $2.43 per share in its upcoming report, which represents a year-over-year change of +73.3%. Revenues are expected to be $8.96 million, down 48.5% 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 Sutro Biopharma, the consensus EPS estimate for the quarter has been revised 4.7% 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 STRO 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 >>>>
Sutro Biopharma is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, CRISPR Therapeutics AG (CRSP), finished the last trading session 1.1% higher at $49.7. CRSP has returned -16.4% over the past month.
For CRISPR Therapeutics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.15. This represents a change of +27.2% from what the company reported a year ago. CRISPR Therapeutics currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).