Rhythm Pharmaceuticals, Inc. (RYTM) shares ended the last trading session 5.2% higher at $62.97. 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 10.2% gain over the past four weeks.

The sudden rise in the stock price can be attributed to positive investor expectations regarding the continued strong sales growth of Rhythm Pharmaceuticals’ only marketed product, Imcivree (setmelanotide) injection, approved for treating Bardet-Biedl syndrome. RYTM is also progressing a comprehensive clinical development program for setmelanotide in additional rare diseases, along with the investigational MC4R agonists bivamelagon (LB54640) and RM-718, aimed at treating congenital hyperinsulinism. 

This company is expected to post quarterly loss of $0.69 per share in its upcoming report, which represents a year-over-year change of +70.6%. Revenues are expected to be $40.18 million, up 54.7% 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 Rhythm Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Rhythm Pharmaceuticals is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Mirum Pharmaceuticals, Inc. (MIRM), finished the last trading session 2.2% higher at $40.47. MIRM has returned -14.4% over the past month.

For Mirum Pharmaceuticals , the consensus EPS estimate for the upcoming report has changed -2.8% over the past month to -$0.39. This represents a change of +27.8% from what the company reported a year ago. Mirum Pharmaceuticals currently has a Zacks Rank of #3 (Hold).

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