Corcept Moves 6.5% Higher: Will This Strength Last?

Corcept Therapeutics CORT shares soared 6.5% in the last trading session to close at $42.27. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.7% gain over the past four weeks.

The company's sole marketed drug, Korlym, approved for treating Cushing's syndrome, is witnessing strong demand and driving growth. Also, a new drug application for the lead candidate, relacorilant, to treat Cushing's syndrome is expected to be filed in the fourth quarter of 2024. The ongoing progress with Korlym and relacorilant could be the reason for the share price rally.

This drug developer is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -7.1%. Revenues are expected to be $171.04 million, up 38.4% 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 Corcept, 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 CORT 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).

Corcept is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Zoetis ZTS, finished the last trading session 0.4% higher at $196.48. ZTS has returned 6.6% over the past month.

For Zoetis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.46. This represents a change of +7.4% from what the company reported a year ago. Zoetis currently has a Zacks Rank of #2 (Buy).

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