Strength Seen in United Therapeutics (UTHR): Can Its 4.9% Jump Turn into More Strength?

United Therapeutics (UTHR) shares soared 4.9% in the last trading session to close at $370.74. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% loss over the past four weeks.

Earlier this month, the company announced that it had completed the full enrollment in the phase III TETON 1 study, which is evaluating the use of Tyvaso (treprostinil) inhalation solution (nebulized Tyvaso) for the treatment of idiopathic pulmonary fibrosis. Top-line data from the same is expected in the first half of 2026. This might have driven the recent share price rally.

This drugmaker is expected to post quarterly earnings of $6.33 per share in its upcoming report, which represents a year-over-year change of +45.2%. Revenues are expected to be $725.32 million, up 18% 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 United Therapeutics, the consensus EPS estimate for the quarter has been revised 0.5% 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 UTHR 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 >>>>

United Therapeutics is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Aquestive Therapeutics (AQST), finished the last trading session 14.1% higher at $3.39. AQST has returned -2.6% over the past month.

Aquestive Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.14. Compared to the company's year-ago EPS, this represents a change of -16.7%. Aquestive Therapeutics currently boasts a Zacks Rank of #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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