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Durect (DRRX) Soars 11.8%: Is Further Upside Left in the Stock?

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Durect (DRRX - Free Report) shares soared 11.8% in the last trading session to close at $6.65. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 63.5% gain over the past four weeks.

Shares of the company were high as optimism builds around growth for the drug/biotech sector in 2023.

This specialty pharmaceutical company is expected to post quarterly loss of $0.53 per share in its upcoming report, which represents a year-over-year change of -76.7%. Revenues are expected to be $3.23 million, down 55.8% 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 Durect, 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 DRRX 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 >>>>

Durect belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Corcept Therapeutics (CORT - Free Report) , closed the last trading session 1.8% higher at $20.89. Over the past month, CORT has returned -1.5%.

Corcept's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.15. Compared to the company's year-ago EPS, this represents a change of -42.3%. Corcept currently boasts a Zacks Rank of #3 (Hold).


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