Strength Seen in Enanta Pharmaceuticals (ENTA): Can Its 13.8% Jump Turn into More Strength?
Enanta Pharmaceuticals (ENTA) shares rallied 13.8% in the last trading session to close at $12.04. 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 11.5% gain over the past four weeks.
The surge in the stock price was observed after Enanta announced plans to provide business updates on its pipeline programs and share the 2024 outlook at an upcoming medical conference. This represents the investors’ positive mindset regarding the company’s developmental portfolio of small-molecule drugs for viral infections. Enanta’s lead candidate, zelicapavir, an oral, N-protein inhibitor, is being evaluated in two ongoing mid-stage studies to treat pediatric and adult patients with respiratory syncytial virus (RSV) infection. Per the press release, topline results from at least one of these studies are expected in the third quarter of 2024, subject to the continuation of a normal northern hemisphere RSV season. Enanta is also currently developing other candidates for COVID-19 and Hepatitis B infection.
This biotechnology company is expected to post quarterly loss of $1.09 per share in its upcoming report, which represents a year-over-year change of +21.6%. Revenues are expected to be $21.81 million, down 7.6% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Enanta Pharmaceuticals is part of the Zacks Medical - Drugs industry. PTC Therapeutics (PTCT), another stock in the same industry, closed the last trading session 3.2% higher at $28.09. PTCT has returned 5.3% in the past month.
PTC Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. Compared to the company's year-ago EPS, this represents a change of +107.2%. PTC Therapeutics 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
Enanta Pharmaceuticals, Inc. (ENTA) : Free Stock Analysis Report
PTC Therapeutics, Inc. (PTCT) : Free Stock Analysis Report
