Ascendis Pharma AS (ASND Quick QuoteASND - Free Report) shares soared 6.5% in the last trading session to close at $115.02. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.5% loss over the past four weeks.

Earlier this month, the company announced that the European Commission has granted marketing authorization to TransCon hGH for the treatment of growth hormone deficiency in children and adolescents aged between three to 18 years. This might have driven the share price rally.

This company is expected to post quarterly loss of $2.58 per share in its upcoming report, which represents a year-over-year change of +18.1%. Revenues are expected to be $4.14 million, up 547.2% 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 Ascendis Pharma AS, the consensus EPS estimate for the quarter has been revised marginally 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 ASND 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 >>>>