Aytu Bioscience, Inc. (AYTU Quick QuoteAYTU - Free Report) shares ended the last trading session 9.2% higher at $8.53. 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 13.7% loss over the past four weeks.

The company reported encouraging result from its early-stage clinical study evaluating endotracheal ultraviolet A light treatment in critically ill COVID-19 patients. The treatment reduced viral load by more than 99% in mechanically ventilated COVID-19 patients in five days. This study data readout has been drivng the stock price.

Price and Consensus

This company is expected to post quarterly loss of $0.32 per share in its upcoming report, which represents a year-over-year change of +78.7%. Revenues are expected to be $15.5 million, up 90% 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 Aytu Bioscience, Inc., the consensus EPS estimate for the quarter has been revised 60% 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 AYTU 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 >>>>