Aquestive Therapeutics (AQST) shares ended the last trading session 7.9% higher at $6.69. 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 27.1% gain over the past four weeks.
The surge in stock price is likely due to positive expectations regarding the company’s key product candidate, Anaphylm, which is currently under review with the FDA for treating severe allergic reactions. Earlier this week, the United States Patent and Trademark Office (USPTO) issued two additional U.S. patents related to Anaphylm, which will extend protection into 2037.
This specialty pharmaceutical company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $13.36 million, down 1.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Aquestive 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 AQST 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 >>>>
Aquestive Therapeutics is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Madrigal (MDGL), finished the last trading session 2% lower at $428.3. MDGL has returned 1.6% over the past month.
For Madrigal, the consensus EPS estimate for the upcoming report has changed +78.4% over the past month to -$1.96. This represents a change of +60.2% from what the company reported a year ago. Madrigal currently has a Zacks Rank of #3 (Hold).
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Aquestive Therapeutics, Inc. (AQST): Free Stock Analysis Report Madrigal Pharmaceuticals, Inc. (MDGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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