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Strength Seen in Prothena (PRTA): Can Its 15.0% Jump Turn into More Strength?

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Prothena (PRTA - Free Report) shares rallied 15% in the last trading session to close at $17.59. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.7% loss over the past four weeks.

Prothena owns a robust Alzheimer's Disease (“AD”) pipeline that spans next-generation antibody immunotherapy, small molecules and vaccines. The pipeline progress has been encouraging. PRTA's collaboration with bigwigs like Roche and Bristol Myers are reaping results. The recent approval of AD drugs has put the spotlight on companies with promising candidates in pipleine.

This drug developer is expected to post quarterly loss of $1.18 per share in its upcoming report, which represents a year-over-year change of -410.5%. Revenues are expected to be $2.1 million, down 97.5% 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 Prothena, the consensus EPS estimate for the quarter has been revised 1.9% 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 PRTA 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 >>>>

Prothena is part of the Zacks Medical - Biomedical and Genetics industry. Vericel Corporation (VCEL - Free Report) , another stock in the same industry, closed the last trading session 4.4% higher at $45.66. VCEL has returned 1.3% in the past month.

For Vericel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. This represents a change of +37.5% from what the company reported a year ago. Vericel currently has a Zacks Rank of #3 (Hold).


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