Enanta Pharmaceuticals (ENTA Quick QuoteENTA - Free Report) shares rallied 10.6% in the last trading session to close at $67.69. 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 7.1% gain over the past four weeks.

Investors are optimistic on clinical-stage biotechnology company, Enanta’s, pipeline progress. In particular, EDP-235, the company’s lead oral protease inhibitor specifically designed for the treatment of COVID-19 promises potential for growth.

This biotechnology company is expected to post quarterly loss of $1.28 per share in its upcoming report, which represents a year-over-year change of -132.7%. Revenues are expected to be $25.92 million, up 9.7% 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 Enanta Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 5.8% 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 ENTA 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 >>>>