Back to top

Image: Bigstock

PTC Therapeutics (PTCT) Surges 5.8%: Is This an Indication of Further Gains?

Read MoreHide Full Article

PTC Therapeutics (PTCT - Free Report) shares soared 5.8% in the last trading session to close at $25.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 39% loss over the past four weeks.

The rise is likely attributable to the recovery of share prices, which had fallen last week following a negative opinion from the Committee for Medicinal Products for Human Use regarding the conditional marketing and full marketing authorization of Translarna (ataluren) for the treatment of nonsense mutation Duchenne muscular dystrophy.

This biopharmaceutical company is expected to post quarterly loss of $1 per share in its upcoming report, which represents a year-over-year change of +34.6%. Revenues are expected to be $207.3 million, down 4.5% 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 PTC Therapeutics, 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 PTCT 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 >>>>

PTC Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Scynexis (SCYX - Free Report) , closed the last trading session 5.9% higher at $3.39. Over the past month, SCYX has returned 3.6%.

For Scynexis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. This represents a change of +146.8% from what the company reported a year ago. Scynexis currently has a Zacks Rank of #3 (Hold).

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

PTC Therapeutics, Inc. (PTCT) - free report >>

SCYNEXIS, Inc. (SCYX) - free report >>

Published in