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Atara Biotherapeutics (ATRA) Moves 17% Higher: Will This Strength Last?

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Atara Biotherapeutics (ATRA - Free Report) shares ended the last trading session 17% higher at $8.66. 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 46% gain over the past four weeks.

Earlier this month, the company announced that it plans to disclose its completion of ATA188 phase II EMBOLD study interim analysis after market close on Jul 12. This might have driven the share price rally.

This drug developer is expected to post quarterly loss of $0.91 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $8.84 million, up 128.5% 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 Atara Biotherapeutics, 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 ATRA 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 >>>>

Atara Biotherapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Myriad Genetics (MYGN - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $19.50. MYGN has returned 17.4% in the past month.

For Myriad, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of -83.3% from what the company reported a year ago. Myriad currently has a Zacks Rank of #4 (Sell).


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