Legend Biotech Corporation Sponsored ADR (LEGN) shares rallied 5.1% in the last trading session to close at $33.74. 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 15.4% loss over the past four weeks.

The sharp surge in the stock price has likely been driven by investor optimism surrounding the sustained strong sales of Legend Biotech’s Carvykti, a one-time treatment for relapsed or refractory multiple myeloma, developed and marketed in collaboration with Johnson & Johnson.

This company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -112.5%. Revenues are expected to be $190.47 million, up 102.7% 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 Legend Biotech, the consensus EPS estimate for the quarter has been revised 4.6% 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 LEGN 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 >>>>

Legend Biotech is part of the Zacks Medical - Biomedical and Genetics industry. BioMarin Pharmaceutical (BMRN), another stock in the same industry, closed the last trading session 0.6% higher at $60.02. BMRN has returned -16.6% in the past month.

BioMarin's consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $0.95. Compared to the company's year-ago EPS, this represents a change of +33.8%. BioMarin currently boasts a Zacks Rank of #2 (Buy).

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This article originally published on Zacks Investment Research (zacks.com).

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