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Zealand Pharma AS (ZEAL) Stock Jumps 9.1%: Will It Continue to Soar?

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Zealand Pharma AS shares rallied 9.1% in the last trading session to close at $17.44. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 29.7% gain over the past four weeks.

The rise in share price is attributable to investor expectations for the company’s pipeline focused on developing peptide-based medicines. ZEAL is currently evaluating multiple candidates in late-stage clinical studies targeting rare diseases like short bowel syndrome and congenital hyperinsulinism as well as type 1 diabetes.

This company is expected to post quarterly loss of $1.53 per share in its upcoming report, which represents a year-over-year change of -37.8%. Revenues are expected to be $2.55 million, down 81.3% 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 Zealand Pharma AS, 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 ZEAL 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 >>>>

Zealand Pharma AS belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Arcturus Therapeutics (ARCT - Free Report) , closed the last trading session 8.7% higher at $19.07. Over the past month, ARCT has returned 20.5%.

For Arcturus Therapeutics, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.84. This represents a change of +11.1% from what the company reported a year ago. Arcturus Therapeutics currently has a Zacks Rank of #4 (Sell).

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