Assertio (ASRT) shares ended the last trading session 17.9% higher at $16.51. 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 16.3% gain over the past four weeks.
Assertio Holdings’ stock rally can be attributed to the positive investor sentiment around its commercial portfolio performance and improving financial outlook. The company has been benefiting from consistent demand across its key pain and neurology products, along with better-than-expected revenue trends and ongoing margin expansion initiatives.
This drugmaker is expected to post quarterly loss of $1.91 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $10.34 million, down 61% 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 Assertio, the consensus EPS estimate for the quarter has been revised 16.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ASRT 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 >>>>
Assertio is part of the Zacks Medical - Drugs industry. Karyopharm Therapeutics (KPTI), another stock in the same industry, closed the last trading session 18.3% lower at $5.44. KPTI has returned -33.6% in the past month.
Karyopharm Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.35. Compared to the company's year-ago EPS, this represents a change of +51.3%. Karyopharm Therapeutics currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
