Zai Lab Limited Unsponsored ADR (ZLAB) shares soared 9% in the last trading session to close at $33.78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.9% gain over the past four weeks.
Last month, the company announced that the FDA had granted Orphan Drug designation to its highly active first-in-class DLL3 antibody-drug conjugate, ZL-1310, for the treatment of small cell lung cancer (SCLC). The growing optimism related to the development of ZL-1310 for treating SCLC might have driven the recent share price rally.
This company is expected to post quarterly loss of $0.65 per share in its upcoming report, which represents a year-over-year change of +33.7%. Revenues are expected to be $106.89 million, up 62.4% 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 Zai Lab Limited, 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 ZLAB going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zai Lab Limited belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Clearside Biomedical, Inc. (CLSD), closed the last trading session 7.8% lower at $0.95. Over the past month, CLSD has returned 10.4%.
Clearside Biomedical's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.13. Compared to the company's year-ago EPS, this represents a change of -62.5%. Clearside Biomedical currently boasts a Zacks Rank of #3 (Hold).
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Zai Lab Limited Unsponsored ADR (ZLAB) : Free Stock Analysis Report
Clearside Biomedical, Inc. (CLSD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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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