Intra-Cellular Therapies ITCI shares rallied 34.1% in the last trading session to close at $127.19. 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 14.3% gain over the past four weeks.

The surge in stock price came after pharma giant J&J announced its intent to acquire all outstanding shares of ITCI for $132 per share in cash, aggregating to nearly $14.6 billion. The deal is expected to be completed before this year’s end.

This biopharmaceutical company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +83.3%. Revenues are expected to be $192.86 million, up 46% 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 Intra-Cellular, 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 ITCI 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 >>>>

Intra-Cellular is part of the Zacks Medical - Biomedical and Genetics industry. Kiniksa Pharmaceuticals, Ltd. KNSA, another stock in the same industry, closed the last trading session 8.8% lower at $18.17. KNSA has returned -1.3% in the past month.

For Kiniksa Pharmaceuticals , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. This represents a change of -275% from what the company reported a year ago. Kiniksa Pharmaceuticals currently has a Zacks Rank of #2 (Buy).

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