This story originally appeared on Zacks

BRIDGEBIO PHARMA BBIO shares ended the last trading session 14.6% higher at $16.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 63.7% loss over the past four weeks.

This surge was most likely attributable to the recovery of the share prices of BridgeBio after they plunged significantly in the last week due to dismal top-line data from a phase III study – ATTRibute-CM study – evaluating its lead pipeline candidate, acoramidis, for the treatment of symptomatic transthyretin amyloid cardiomyopathy. After 12 months of treatment, the ATTRibute-CM study did not meet its primary endpoint of improvement in the six-minute walk distance (6MWD) test relative to placebo.

This rare disease drug developer is expected to post quarterly loss of $0.80 per share in its upcoming report, which represents a year-over-year change of +20.8%. Revenues are expected to be $33.19 million, up 27561.7% 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 BridgeBio Pharma, the consensus EPS estimate for the quarter has been revised 0.7% 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 BBIO 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 >>>>

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