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Sutro Biopharma, Inc. (STRO) Soars 11.3%: Is Further Upside Left in the Stock?

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Sutro Biopharma, Inc. (STRO - Free Report) shares soared 11.3% in the last trading session to close at $5.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.7% gain over the past four weeks.

The sudden soaring of the stock price of the company can be attributed to the positive momenturm built around its pipeline candidates. Sutro is currently developing a number of antibody drug conjugates, independently and in partnership with other companies, for treating several cancer indications, in separate early-stage studies. The company is also currently evaluating certain cytokine based therapies targeting immuno-oncology and autoimmune pathways. 

This company is expected to post quarterly loss of $0.83 per share in its upcoming report, which represents a year-over-year change of +1.2%. Revenues are expected to be $11.35 million, up 92.4% 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 Sutro Biopharma, Inc., the consensus EPS estimate for the quarter has been revised 0.6% 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 STRO 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 >>>>

Sutro Biopharma, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Xenon Pharmaceuticals (XENE - Free Report) , another stock in the same industry, closed the last trading session 1.5% higher at $40.78. XENE has returned 11.4% in the past month.

For Xenon Pharmaceuticals, the consensus EPS estimate for the upcoming report has changed +5.2% over the past month to -$0.62. This represents a change of -77.1% from what the company reported a year ago. Xenon Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

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