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Strength Seen in Zealand Pharma AS (ZLDPF): Can Its 11.6% Jump Turn into More Strength?

Zealand Pharma A/S (ZLDPF) shares rallied 11.6% in the last trading session to close at $111.55. 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 13.1% gain over the past four weeks.

Last week, the company announced positive top-line data from part 2 of a phase Ib multiple ascending dose (MAD) study, evaluating the safety, tolerability and clinical effects of 16 weeks of dosing with petrelintide for weight management. Data from the same showed that treatment with high dose petrelintide resulted in a mean body weight decrease of 8.6% from the baseline while treatment with placebo resulted in a mean body weight decrease of 1.7% from the baseline. This might have driven the share price rally.

This company is expected to post quarterly loss of $0.63 per share in its upcoming report, which represents a year-over-year change of +21.3%. Revenues are expected to be $0.5 million, down 67.1% 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.

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For Zealand Pharma AS, 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 ZLDPF 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 >>>>

Zealand Pharma AS is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, TScan Therapeutics, Inc. (TCRX), finished the last trading session 10.1% lower at $6.50. TCRX has returned -16.9% over the past month.

For TScan Therapeutics , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.30. This represents a change of +41.2% from what the company reported a year ago. TScan Therapeutics currently has a Zacks Rank of #3 (Hold).

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Zealand Pharma A/S (ZLDPF) : Free Stock Analysis Report

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