Rhythm Pharmaceuticals, Inc. (RYTM) shares soared 5.5% in the last trading session to close at $57.52. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.7% loss over the past four weeks.
Earlier this month, the company announced robust preliminary results for the fourth quarter and full-year 2024. Preliminary net revenues from worldwide sales of Imcivree (setmelanotide) were around $42 million for the fourth quarter of 2024 and approximately $130 million for the full year of 2024. Rhythm Pharmaceuticals also outlined key pipeline goals for 2025. This might have driven the recent share price rally.
This company is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of -2.9%. Revenues are expected to be $36.23 million, up 49.5% 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 Rhythm Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 1% 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 RYTM 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 >>>>
Rhythm Pharmaceuticals is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Ultragenyx (RARE), finished the last trading session 3.2% higher at $41.28. RARE has returned -8.8% over the past month.
For Ultragenyx , the consensus EPS estimate for the upcoming report has changed +1.5% over the past month to -$1.28. This represents a change of +15.8% from what the company reported a year ago. Ultragenyx currently has a Zacks Rank of #3 (Hold).
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