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Sutro Biopharma, Inc. (STRO) Moves 6.4% Higher: Will This Strength Last?

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Sutro Biopharma, Inc. (STRO - Free Report) shares soared 6.4% in the last trading session to close at $9.70. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.8% gain over the past four weeks.

The rise in share price is most likely due to its impressive pipeline development. Sutro’s proprietary cell-free platform has enabled five clinical-stage product candidates, including its internal programs, STRO-002 and STRO-001, and its collaborator programs, CC-99712, M1231, and VAX-24.  A phase I study on STRO-002 for ovarian cancer completed enrollment and the company is now evaluating a registrational path forward.  It is also exploring the therapeutic benefit of STRO-002 in other tumor types.

 

This company is expected to post quarterly loss of $0.78 per share in its upcoming report, which represents a year-over-year change of -81.4%. Revenues are expected to be $11.48 million, down 21.7% 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 Sutro Biopharma, Inc., the consensus EPS estimate for the quarter has been revised 15.4% 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 STRO 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 >>>>

Sutro Biopharma, Inc. belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Horizon Therapeutics (HZNP - Free Report) , closed the last trading session 1.5% higher at $108. Over the past month, HZNP has returned 12.8%.

Horizon Therapeutics' consensus EPS estimate for the upcoming report has changed -2% over the past month to $1.16. Compared to the company's year-ago EPS, this represents a change of +3766.7%. Horizon Therapeutics currently boasts a Zacks Rank of #3 (Hold).


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