Nektar Therapeutics (NKTR) shares soared 51.1% in the last trading session to close at $56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.4% loss over the past four weeks.
The stock rallied after the company announced positive data from the 36-week blinded maintenance period of the 52-week REZOLVE-AD study evaluating rezpeg in patients with moderate-to-severe atopic dermatitis (AD). Data from the same showed that treatment with rezpeg led to durable and new responses across key disease measurements with both monthly and quarterly dosing. The safety profile of rezpeg seen in maintenance was similar to that seen in the induction phase of the study.
This biopharmaceutical company is expected to post quarterly loss of $2.69 per share in its upcoming report, which represents a year-over-year change of -19.6%. Revenues are expected to be $9.06 million, down 68.9% 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 Nektar, 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 NKTR 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 >>>>
Nektar is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Merck KGaA (MKKGY), finished the last trading session 1.2% higher at $29.88. MKKGY has returned -3.8% over the past month.
Merck KGaA's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.47. Compared to the company's year-ago EPS, this represents a change of -13%. Merck KGaA currently boasts a Zacks Rank of #2 (Buy).
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Nektar Therapeutics (NKTR): Free Stock Analysis Report Merck KGaA (MKKGY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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