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Arcturus Therapeutics (ARCT) Surges 7.2%: Is This an Indication of Further Gains?

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Arcturus Therapeutics (ARCT - Free Report) shares soared 7.2% in the last trading session to close at $25.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.2% gain over the past four weeks.

Last month, the company reported robust financial results for the fourth quarter and full year of 2021. This might have been driving the share price rally.

This pharmaceutical company is expected to post quarterly loss of $1.29 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $3.26 million, up 53.1% 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 Arcturus Therapeutics, the consensus EPS estimate for the quarter has been revised 284.7% 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 ARCT 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 >>>>

Arcturus Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY - Free Report) , closed the last trading session 0.7% higher at $71.02. Over the past month, BMY has returned 4.6%.

Bristol Myers' consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $1.93. Compared to the company's year-ago EPS, this represents a change of +10.9%. Bristol Myers currently boasts a Zacks Rank of #3 (Hold).

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