Enanta Pharmaceuticals (ENTA) Stock Jumps 10.1%: Will It Continue to Soar?

Enanta Pharmaceuticals (ENTA) shares rallied 10.1% in the last trading session to close at $45.67. 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 7.2% gain over the past four weeks.

Earlier this month, the company filed a suit in United States District Court for the District of Massachusetts against pharma giant, Pfizer seeking damages for infringement of U.S. Patent No. 11,358,953 (the ’953 Patent) in the manufacture, use and sale of the latter’s COVID-19 antiviral, Paxlovid (nirmatrelvir tablets; ritonavir tablets). This might have been driving the share price rally.

This biotechnology company is expected to post quarterly loss of $1.31 per share in its upcoming report, which represents a year-over-year change of -10.1%. Revenues are expected to be $20.27 million, down 6.2% 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 Enanta Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 5.3% 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 ENTA 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 >>>>

Enanta Pharmaceuticals is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Esperion Therapeutics (ESPR), finished the last trading session 11.3% higher at $6.29. ESPR has returned 0.4% over the past month.

For Esperion Therapeutics , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.95. This represents a change of +43.1% from what the company reported a year ago. Esperion Therapeutics currently has a Zacks Rank of #3 (Hold).

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