Nektar (NKTR) Moves 8.5% Higher: Will This Strength Last?

·2-min read

Nektar Therapeutics NKTR shares rallied 8.5% in the last trading session to close at $20.10. 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 3.7% loss over the past four weeks.

The company reported mixed first quarter results, wherein earnings beat estimates while revenues were lower-than-expected. Despite mixed results, shaes of the comany rallied presumably due to its progress with its promising pipeline candidates. Several study data readouts are expected over the course of 2021, which if positive will drive shares high further.

Price and Consensus

Price Consensus Chart for NKTR
Price Consensus Chart for NKTR

This biopharmaceutical company is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of -60%. Revenues are expected to be $27.3 million, down 44.1% 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 Nektar, the consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NKTR 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 >>>>

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