Sutro Biopharma, Inc. (STRO) shares rallied 5.9% in the last trading session to close at $15.8. 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 43.7% gain over the past four weeks.
The sudden stock price gain can be attributed to a positive investor mindset surrounding the potential of Sutro Biopharma’s wholly-owned oncology pipeline, which currently comprises one clinical-stage candidate, STRO-004, being developed in a phase I study for solid tumors. Two other pre-clinical oncology candidates are expected to enter clinical-stage evaluation in 2026 and 2027. Apart from these, the company’s pipeline comprises partnered programs with Vaxcyte and Astellas Pharma.
This company is expected to post quarterly loss of $4.66 per share in its upcoming report, which represents a year-over-year change of +47.6%. Revenues are expected to be $9.08 million, down 35.2% 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 Sutro Biopharma, the consensus EPS estimate for the quarter has been revised 3.7% 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, Rhythm Pharmaceuticals, Inc. (RYTM), finished the last trading session 3.3% higher at $105.95. RYTM has returned -8.7% over the past month.
Rhythm Pharmaceuticals' consensus EPS estimate for the upcoming report has changed +3.5% over the past month to -$0.8. Compared to the company's year-ago EPS, this represents a change of -11.1%. Rhythm Pharmaceuticals currently boasts a Zacks Rank of #4 (Sell).
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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.
