Rhythm Pharmaceuticals (RYTM) Stock Jumps 36.6%: Will It Continue to Soar?

Rhythm Pharmaceuticals, Inc. (RYTM) shares rallied 36.6% in the last trading session to close at $89. 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 3.3% loss over the past four weeks.The stock rallied after the company announced positive top-line data from a phase II study evaluating its investigational oral melanocortin-4 receptor (MC4R) agonist, bivamelagon, in patients with acquired hypothalamic obesity. Data from the study showed that treatment with bivamelagon led to statistically significant and clinically meaningful reductions in body mass index at 14 weeks of treatment.This company is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of -16.4%. Revenues are expected to be $43.76 million, up 50.5% 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 Rhythm Pharmaceuticals, 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 RYTM going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Rhythm Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. EyePoint Pharmaceuticals (EYPT), another stock in the same industry, closed the last trading session 10.2% higher at $10.96. EYPT has returned 8% in the past month.For EyePoint Pharmaceuticals, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.67. This represents a change of -15.5% from what the company reported a year ago. EyePoint Pharmaceuticals currently has a Zacks Rank of #3 (Hold).Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks