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Corcept (CORT) Surges 5.1%: Is This an Indication of Further Gains?

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Corcept Therapeutics (CORT - Free Report) shares rallied 5.1% in the last trading session to close at $25.39. 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 8.7% loss over the past four weeks.

Shares of Corcept fell earlier this week as the United States district court for the district of New Jersey found that the company’s patents were not infringed by Teva Pharmaceuticals.

However, the stock recovered as some analysts believe that this is an ideal time to buy Corcept’s stock. This might have been driving the share price rally.

This drug developer is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +78.6%. Revenues are expected to be $128.36 million, up 24.6% 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 Corcept, the consensus EPS estimate for the quarter has been revised 2.3% 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 CORT 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 >>>>

Corcept is part of the Zacks Medical - Drugs industry. Lyell Immunopharma (LYEL - Free Report) , another stock in the same industry, closed the last trading session 5.7% lower at $1.99. LYEL has returned 10.5% in the past month.

For Lyell Immunopharma, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.21. This represents a change of -600% from what the company reported a year ago. Lyell Immunopharma currently has a Zacks Rank of #2 (Buy).


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