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Protagonist Therapeutics (PTGX) Moves 18.2% Higher: Will This Strength Last?

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Protagonist Therapeutics (PTGX - Free Report) shares rallied 18.2% in the last trading session to close at $15.31. 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 73.9% loss over the past four weeks.

Shares of the company are recovering after they declined significantly in the past couple of days after the FDA placed a clinical hold on the clinical studies for Protagonist's investigational product candidate, rusfertide.

This biopharmaceutical company is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -219.1%. Revenues are expected to be $3.43 million, down 73.8% 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 Protagonist Therapeutics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 >>>>

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