Arcutis Biotherapeutics, Inc. (ARQT) shares rallied 15.9% in the last trading session to close at $13.21. 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 14.2% loss over the past four weeks.

Last month, the company announced robust preliminary results for the fourth-quarter and full-year 2024. Product revenues for the fourth quarter of 2024 are expected to be around $63 million. For the full year, product revenues are expected to be approximately $160 million. This might have driven the recent share price rally.

This company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of +62.5%. Revenues are expected to be $57.75 million, up 326.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Arcutis Biotherapeutics, the consensus EPS estimate for the quarter has been revised 15% 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 ARQT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Arcutis Biotherapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Legend Biotech Corporation Sponsored ADR (LEGN), finished the last trading session 3.6% higher at $35.87. LEGN has returned 9.5% over the past month.

Legend Biotech's consensus EPS estimate for the upcoming report has changed +2.9% over the past month to -$0.34. Compared to the company's year-ago EPS, this represents a change of +15%. Legend Biotech currently boasts a Zacks Rank of #3 (Hold).

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