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Strength Seen in Dianthus Therapeutics, Inc. (DNTH): Can Its 5.7% Jump Turn into More Strength?

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Dianthus Therapeutics, Inc. (DNTH - Free Report) shares soared 5.7% in the last trading session to close at $27.99. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.9% loss over the past four weeks.

The growing optimism over the company’s lead pipeline candidate DNTH103, which is being developed for treating several autoimmune diseases, like generalized Myasthenia Gravis (gMG), multifocal motor neuropathy (MMN) and chronic inflammatory demyelinating polyneuropathy (CIDP) might have driven the recent share price rally.

This company is expected to post quarterly loss of $0.59 per share in its upcoming report, which represents a year-over-year change of +84.4%. Revenues are expected to be $1.07 million, up 16.5% 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 Dianthus Therapeutics, Inc., the consensus EPS estimate for the quarter has been revised 4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DNTH 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 >>>>

Dianthus Therapeutics, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. uniQure (QURE - Free Report) , another stock in the same industry, closed the last trading session 11.1% higher at $5.92. QURE has returned -0.7% in the past month.

uniQure's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.12. Compared to the company's year-ago EPS, this represents a change of +40.4%. uniQure currently boasts a Zacks Rank of #3 (Hold).


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