Zai Lab Limited Unsponsored ADR (ZLAB) shares soared 14.7% in the last trading session to close at $33.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 42.3% gain over the past four weeks.

The sudden soaring of the stock price was observed after Zai Lab Limited announced an objective response rate of 74%, from the ongoing global phase Ia/Ib study, across all tested dose levels of its investigational candidate, ZL-1310, in patients with recurrent extensive-stage small cell lung cancer (SCLC). ZL-1310 is the company’s potential best-in-class next-generation antibody-drug conjugate being developed for SCLC. The candidate was also generally safe and overall well-tolerated in the early-stage study with most adverse events being mild to moderate in severity. Based on the encouraging phase I results, Zai Lab plans to continue evaluating ZL-1310 as a single agent and in combination to treat extensive-stage SCLC in recurrent and first-line therapy.

This company is expected to post quarterly loss of $0.74 per share in its upcoming report, which represents a year-over-year change of -4.2%. Revenues are expected to be $103.54 million, up 49.6% 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 Zai Lab Limited, the consensus EPS estimate for the quarter has been revised 3.7% 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 ZLAB 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 >>>>

Zai Lab Limited is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Adma Biologics (ADMA), finished the last trading session 1.7% higher at $15.96. ADMA has returned -19.5% over the past month.

For Adma Biologics , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of +1200% from what the company reported a year ago. Adma Biologics currently has a Zacks Rank of #3 (Hold).

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