Delcath Systems (DCTH) Soars 9.8%: Is Further Upside Left in the Stock?

Delcath Systems, Inc. DCTH shares soared 9.8% in the last trading session to close at $11.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12% loss over the past four weeks.

Delcath Systems stock surged amid a broader market rebound following the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. The market is also upbeat about the the publication of company’s Phase 3 FOCUS study in Annals of Surgical Oncology, demonstrating favorable outcome of Melphalan/Hepatic Delivery System (Melphalan/HDS). 

This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +123.3%. Revenues are expected to be $18.11 million, up 476.8% 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 Delcath Systems, 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 DCTH 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 >>>>

Delcath Systems is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Fresenius FMS, finished the last trading session 3.8% higher at $23.42. FMS has returned -7.4% over the past month.

For Fresenius

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This article originally published on Zacks Investment Research (zacks.com).

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