Protagonist Therapeutics (PTGX Quick QuotePTGX - Free Report) shares rallied 5.9% in the last trading session to close at $31.15. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.2% gain over the past four weeks.

Earlier this month, the company reported record quarterly revenues of $5.7 million in the fourth quarter of 2020. This might have driven the rally. The company’s efforts to develop its pipeline while advancing multiple clinical programs targeting various indications, is also a positive.

Price and Consensus

This biopharmaceutical company is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of +20.8%. Revenues are expected to be $3.75 million, up 2.7% 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 Protagonist Therapeutics, the consensus EPS estimate for the quarter has been revised 7.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PTGX 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 >>>>