Sutro Biopharma, Inc. (STRO) shares ended the last trading session 11.9% higher at $15.64. 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 23.4% gain over the past four weeks.
Sutro Biopharma’s stock price surge is likely tied to the pricing announcement of a major underwritten offering of shares. It strengthens the financial position of the company and extends its cash runaway to support ongoing clinical studies and pipeline advancement. Furthermore, the company is advancing multiple candidates which are designed with best-in-class potential for complex targets across multiple tumor types where competition remains limited.
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 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 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, TScan Therapeutics, Inc. (TCRX), closed the last trading session 1.4% higher at $1. Over the past month, TCRX has returned -16%.
For TScan Therapeutics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.27. This represents a change of +6.9% from what the company reported a year ago. TScan Therapeutics currently has a Zacks Rank of #3 (Hold).
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Sutro Biopharma, Inc. (STRO): Free Stock Analysis Report TScan Therapeutics, Inc. (TCRX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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