ARIDIS PHARMACT (ARDS) shares soared 10% in the last trading session to close at $6.85. 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% gain over the past four weeks.
Last month, the company reported robust financial results for the first quarter of 2021. This might have driven the rally. The company has a robust portfolio of pipeline candidates which are being developed with its proprietary technology platforms to treat serious and life-threatening infections is also a positive.
This company is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of -21.3%. Revenues are expected to be $0.4 million, down 60% 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 ARIDIS PHARMACT, the consensus EPS estimate for the quarter has been revised 1.2% 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 ARDS 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
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