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PTC Therapeutics (PTCT) Soars 11.1%: Is Further Upside Left in the Stock?

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PTC Therapeutics (PTCT - Free Report) shares ended the last trading session 11.1% higher at $41.45. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.6% gain over the past four weeks.

The stock rallied, driven by optimism over the initiation of the phase II PIVOT-HD study, which is evaluating oral, small-molecule splicing modifier, PTC518, in people with Huntington's disease.

This biopharmaceutical company is expected to post quarterly loss of $1.57 per share in its upcoming report, which represents a year-over-year change of +14.2%. Revenues are expected to be $146.49 million, up 24.2% 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 PTC Therapeutics, 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 PTCT 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 >>>>

PTC Therapeutics is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Assertio (ASRT - Free Report) , finished the last trading session 2.4% lower at $2.80. ASRT has returned 25.1% over the past month.

For Assertio, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.12. This represents a change of -25% from what the company reported a year ago. Assertio currently has a Zacks Rank of #1 (Strong Buy).


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