Radius Health (RDUS Quick QuoteRDUS - Free Report) shares soared 14.6% in the last trading session to close at $25.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% gain over the past four weeks.

Last month, the company reported quarterly revenues of $62.8 million in the fourth quarter of 2020. The company’s lead drug, Tymlos, which is approved for the treatment of postmenopausal women with osteoporosis at high risk of fracture, is also witnessing a solid uptake and driving year-over-year growth. This might have been driving the rally.

Price and Consensus

This biotechnology company is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents a year-over-year change of +50.6%. Revenues are expected to be $59.84 million, up 24.9% 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 Radius Health, the consensus EPS estimate for the quarter has been revised 16% 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 RDUS 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 >>>>