Enanta Pharmaceuticals (ENTA) shares rallied 6.7% in the last trading session to close at $16. 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 11.6% gain over the past four weeks.

The company’s lead candidate, zelicapavir, an oral, N-protein inhibitor, is being evaluated in two ongoing mid-stage studies to treat pediatric and adult patients with respiratory syncytial virus (RSV) infection. The company also has a developmental portfolio of small-molecule drugs for viral infections. The growing optimism regarding the development of zelicapavir and other pipeline candidates might have driven the share price rally.

This biotechnology company is expected to post quarterly loss of $1.49 per share in its upcoming report, which represents a year-over-year change of +19.9%. Revenues are expected to be $17.3 million, down 8.4% 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 Enanta Pharmaceuticals, 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 ENTA 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 >>>>

Enanta Pharmaceuticals is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Ardelyx (ARDX), finished the last trading session 1.2% higher at $5.89. ARDX has returned -10.3% over the past month.

Ardelyx's consensus EPS estimate for the upcoming report has changed +8.8% over the past month to -$0.10. Compared to the company's year-ago EPS, this represents a change of -25%. Ardelyx currently boasts a Zacks Rank of #3 (Hold).

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