Back to top

Image: Bigstock

Sutro Biopharma, Inc. (STRO) Surges 9.5%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Sutro Biopharma, Inc. (STRO - Free Report) shares rallied 9.5% in the last trading session to close at $5.26. 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 3.7% loss over the past four weeks.

This rise in share price is attributable to positive investor expectations for Sutro’s pipeline. The company’s lead pipeline candidate is luveltamab tazevibulin (luvelta), an investigational antibody drug conjugate (ADC) designed to target folate receptor alpha (FolRα), which is being evaluated in multiple clinical studies across multiple cancer indications, including ovarian, endometrial and lung cancers.

Sutro is also in the process of advancing other pipeline candidates to clinical-stage development to target B-cell malignancies, solid tumors and hematological cancer indications. One of these clinical advancements is expected before this year’s end.

This company is expected to post quarterly loss of $0.81 per share in its upcoming report, which represents a year-over-year change of -32.8%. Revenues are expected to be $12.98 million, up 50.4% 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 Sutro Biopharma, Inc., 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 STRO 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 >>>>

Sutro Biopharma, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Anika Therapeutics (ANIK - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $25.26. ANIK has returned 1.3% in the past month.

Anika's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.26. Compared to the company's year-ago EPS, this represents a change of +23.5%. Anika currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Anika Therapeutics Inc. (ANIK) - free report >>

Sutro Biopharma, Inc. (STRO) - free report >>

Published in