U.S. Markets close in 3 hrs 49 mins

Concert (CNCE) Moves 19.3% Higher: Will This Strength Last?

Concert Pharmaceuticals CNCE shares rallied 19.3% in the last trading session to close at $7.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 40.2% gain over the past four weeks.

Investors are upbeat about the pipeline progress of this late-stage clinical biopharmaceutical company. The company has successfully completed two phase III studies evaluating deuruxolitinib, a novel, deuterated, oral JAK1/2 inhibitor in adults with alopecia areata.

This biopharmaceutical company is expected to post quarterly loss of $0.59 per share in its upcoming report, which represents a year-over-year change of +37.9%. Revenues are expected to be $0.34 million, up 3300% 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 Concert, 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 CNCE 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 >>>>

Concert belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Nektar Therapeutics (NKTR), closed the last trading session 1.3% higher at $2.42. Over the past month, NKTR has returned -17.6%.

Nektar's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.45. Compared to the company's year-ago EPS, this represents a change of +43%. Nektar currently boasts a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Concert Pharmaceuticals, Inc. (CNCE) : Free Stock Analysis Report

Nektar Therapeutics (NKTR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research