Tarsus Pharmaceuticals, Inc. (TARS) shares ended the last trading session 10.9% higher at $65.17. 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 rise in the stock price can be attributed to the growing investor optimism regarding the continued strong uptake of Tarsus Pharmaceuticals’ only marketed product, Xdemvy (lotilaner ophthalmic solution) 0.25%, approved for treating Demodex blepharitis. Per TARS, Xdemvy is one of the fastest-growing and best-selling launches in the prescription eye drop segment. In the first half of 2025, the drug generated $181 million in sales, reflecting a significant year-over-year rise. The trend is expected to continue, driven by prescription growth resulting from new diagnoses. Tarsus Pharmaceuticals is also gearing up to initiate two mid-stage studies, to evaluate TP-04 (lotilaner ophthalmic gel) and TP-05 (lotilaner oral tablet) for treating ocular rosacea and Lyme disease, respectively.
This company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of +37.7%. Revenues are expected to be $112.8 million, up 134.4% 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 Tarsus 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 TARS 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 >>>>
Tarsus Pharmaceuticals is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Arcutis Biotherapeutics, Inc. (ARQT), finished the last trading session 6.3% lower at $19.92. ARQT has returned 31.1% over the past month.
For Arcutis Biotherapeutics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.09. This represents a change of +72.7% from what the company reported a year ago. Arcutis Biotherapeutics currently has a Zacks Rank of #2 (Buy).
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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.
