Arcturus Therapeutics (ARCT) shares ended the last trading session 7.7% higher at $23.16. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.3% gain over the past four weeks.
The sudden uptick can be attributed to a positive investor mindset regarding the potential of ARCT’s wholly-owned pipeline comprising two mRNA therapeutic candidates, ARCT-810 and ARCT-032, undergoing mid-stage development for ornithine transcarbamylase deficiency and cystic fibrosis, respectively. Arcturus, in partnership with renowned vaccine company CSL Seqirus, has developed the first sa-mRNA COVID-19 vaccine, Kostaive, in the world. The drug is currently approved in Japan and the EU.
This pharmaceutical company is expected to post quarterly loss of $1.09 per share in its upcoming report, which represents a year-over-year change of -319.2%. Revenues are expected to be $16.67 million, down 60% 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 Arcturus Therapeutics, 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 ARCT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Arcturus Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Septerna, Inc. (SEPN), finished the last trading session 5% lower at $21.31. SEPN has returned 40.3% over the past month.
For Septerna, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. This represents a change of +102.3% from what the company reported a year ago. Septerna, Inc. currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
