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Zai Lab Limited Unsponsored ADR (ZLAB) Soars 17.6%: Is Further Upside Left in the Stock?

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Zai Lab Limited Unsponsored ADR (ZLAB - Free Report) shares soared 17.6% in the last trading session to close at $47.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 23.2% gain over the past four weeks.

Earlier this month, the company announced data from the pivotal LUNAR study which evaluated the safety and efficacy of Tumor Treating Fields (TTFields) together with standard therapies for stage 4 non-small cell lung cancer. The study met its primary endpoint by showing a statistically significant and clinically meaningful improvement in overall survival versus standard therapies alone. This might have been driving the share price rally.

This company is expected to post quarterly loss of $1.04 per share in its upcoming report, which represents a year-over-year change of +53.6%. Revenues are expected to be $62.79 million, up 42.2% 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 Zai Lab Limited Unsponsored ADR, 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 ZLAB 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 >>>>

Zai Lab Limited Unsponsored ADR is part of the Zacks Medical - Biomedical and Genetics industry. Mersana Therapeutics, Inc. (MRSN - Free Report) , another stock in the same industry, closed the last trading session 4.6% lower at $6.06. MRSN has returned -8% in the past month.

For Mersana Therapeutics, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.47. This represents a change of +30.9% from what the company reported a year ago. Mersana Therapeutics, Inc. currently has a Zacks Rank of #5 (Strong Sell).


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