Protagonist Therapeutics (PTGX) Soars 4.7%: Is Further Upside Left in the Stock?

Protagonist Therapeutics (PTGX) shares ended the last trading session 4.7% higher at $101.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17% gain over the past four weeks.

Protagonist Therapeutics’ stock price increase was driven by the company’s announcement that the FDA approved its partner Johnson & Johnson’s icotrokinra for the treatment of adults and pediatric patients aged 12 years and above with moderate-to-severe plaque psoriasis. Icotrokinra will be marketed as Icotyde, in the United States. Beyond psoriasis, Icotyde is being further evaluated across multiple indications, including active psoriatic arthritis, moderate-to-severe active ulcerative colitis, and Crohn’s disease.

This biopharmaceutical company is expected to post quarterly loss of $0.65 per share in its upcoming report, which represents a year-over-year change of -242.1%. Revenues are expected to be $5 million, down 82.3% 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 Protagonist Therapeutics, the consensus EPS estimate for the quarter has been revised 10.7% 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 PTGX 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 >>>>

Protagonist Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Certara, Inc. (CERT), another stock in the same industry, closed the last trading session 1.8% lower at $6.38. CERT has returned -0.5% in the past month.

For Certara, the consensus EPS estimate for the upcoming report has changed -18.5% over the past month to $0.11. This represents a change of -21.4% from what the company reported a year ago. Certara currently has a Zacks Rank of #4 (Sell).

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