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Strength Seen in Corcept (CORT): Can Its 5.5% Jump Turn into More Strength?

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Corcept Therapeutics (CORT - Free Report) shares soared 5.5% in the last trading session to close at $49.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.3% gain over the past four weeks.

The company’s sole marketed drug, Korlym, approved for treating Cushing's syndrome, is witnessing strong demand and driving growth. Also, a new drug application for the lead candidate, relacorilant, to treat Cushing’s syndrome is expected to be filed later in the fourth quarter of 2024. The ongoing progress with Korlym and relacorilant might have driven the share price rally.

This drug developer is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -3.6%. Revenues are expected to be $172.11 million, up 39.3% 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 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 CORT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). 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. Amneal Pharmaceuticals (AMRX - Free Report) , another stock in the same industry, closed the last trading session 1.4% higher at $8.58. AMRX has returned -4% in the past month.

For Amneal, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of -31.6% from what the company reported a year ago. Amneal currently has a Zacks Rank of #1 (Strong Buy).


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