Catalyst Pharmaceutical (CPRX Quick QuoteCPRX - Free Report) shares soared 6.9% in the last trading session to close at $6.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21% gain over the past four weeks.

Shares of Catalyst Pharmaceuticals have been surging consistently, following positive decision from the Appeals Court, which supported the orphan drug designation for Firdapse granted by the FDA for Lambert-Eaton myasthenic syndrome (LEMS). The decision was a milestone for the company as the FDA had previously approved Jacobus Pharmaceutical Company's drug, Ruzurgi, to treat LEMS in pediatric patients violating the orphan drug designation.

This specialty drug company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -9.1%. Revenues are expected to be $34.47 million, up 17.6% 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 Catalyst, 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 CPRX 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 >>>>