PTC Therapeutics (PTCT) Soars 9.7%: Is Further Upside Left in the Stock?

PTC Therapeutics PTCT shares soared 9.7% in the last trading session to close at $36.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.3% loss over the past four weeks.

This rise in share price is attributable to the company’s progress with its pipeline development. Last week, management reported encouraging interim data from the mid-stage PIVOT-HD study evaluating PTC518, its investigational treatment for Huntington's disease (HD). Following 12 months of treatment with PTC518, patients achieved dose-dependent lowering of mutant huntingtin (mHTT) protein in the blood and cerebrospinal fluid (CSF). The FDA also removed a partial clinical hold on this study, which was previously placed in 2022, after a review of the data.

This biopharmaceutical company is expected to post quarterly loss of $1 per share in its upcoming report, which represents a year-over-year change of +62.4%. Revenues are expected to be $188.37 million, down 11.9% 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 PTC Therapeutics, the consensus EPS estimate for the quarter has been revised 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 PTCT 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 >>>>

PTC Therapeutics is part of the Zacks Medical - Drugs industry. Marinus Pharmaceuticals MRNS, another stock in the same industry, closed the last trading session 1.5% lower at $1.33. MRNS has returned 3.9% in the past month.

For Marinus Pharmaceuticals , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.59. This represents a change of +3.3% from what the company reported a year ago. Marinus Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

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