Eton Pharmaceuticals, Inc. (ETON) shares soared 10.8% in the last trading session to close at $16.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.8% gain over the past four weeks.

Earlier this month, the company announced that it has acquired Galzin (zinc acetate), which is approved by the FDA as a maintenance treatment for patients with Wilson Disease who have been initially treated with a chelating agent. Eton plans to commercialize Galzin in the United States in the first quarter of 2025. The company also acquired European rights to the product. In Europe, it is marketed under the tradename Wilzin. This might have been driving the recent share price rally.

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +77.8%. Revenues are expected to be $10.68 million, up 46.1% 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 Eton Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 20% 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 ETON 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 >>>>

Eton Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Legend Biotech Corporation Sponsored ADR (LEGN), closed the last trading session 0.7% higher at $37.69. Over the past month, LEGN has returned 14.2%.

Legend Biotech's consensus EPS estimate for the upcoming report has changed -2.4% over the past month to -$0.32. Compared to the company's year-ago EPS, this represents a change of +20%. Legend Biotech currently boasts a Zacks Rank of #3 (Hold).

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