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Arcturus Therapeutics (ARCT) Surges 18.7%: Is This an Indication of Further Gains?

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Arcturus Therapeutics (ARCT - Free Report) shares soared 18.7% in the last trading session to close at $21.69. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.3% gain over the past four weeks.

The surge in Arcturus' shares can be attributed to the company’s strategic collaboration with CSL Seqirus, a unit of CSL Limited. Per the agreement, the companies will research, develop and commercialize messenger RNA (mRNA) vaccines targeting SARS-CoV-2 (COVID-19), influenza, pandemic-preparedness and three other globally prevalent respiratory infectious diseases.

This pharmaceutical company is expected to post quarterly loss of $2.01 per share in its upcoming report, which represents a year-over-year change of +2%. Revenues are expected to be $3.5 million, up 43.4% 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 0.8% 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 is part of the Zacks Medical - Biomedical and Genetics industry. ADC Therapeutics SA (ADCT - Free Report) , another stock in the same industry, closed the last trading session 6.6% lower at $4.13. ADCT has returned -15.7% in the past month.

ADC Therapeutics SA's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.51. Compared to the company's year-ago EPS, this represents a change of +13.6%. ADC Therapeutics SA currently boasts a Zacks Rank of #2 (Buy).

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