Rhythm Pharmaceuticals (RYTM) Surges 17.1%: Is This an Indication of Further Gains?

Rhythm Pharmaceuticals, Inc. (RYTM) shares ended the last trading session 17.1% higher at $54.96. 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 7.6% loss over the past four weeks.The stock price rally was observed after RYTM announced meeting the primary goal in a late-stage study of setmelanotide for treating acquired hypothalamic obesity. Per the data readout, the phase III TRANSCEND study met its primary endpoint with a statistically significant and clinically meaningful reduction in body mass index with setmelanotide in adult and pediatric patients compared to placebo. Rhythm Pharmaceuticals also reported clinically meaningful improvements in key secondary endpoints at week 52. Based on the encouraging efficacy data, RYTM is planning regulatory filings for setmelanotide for the acquired hypothalamic obesity indication in the United States and the EU in the third quarter of 2025. This company is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of +71.5%. Revenues are expected to be $40.82 million, up 57.2% 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 been revised marginally 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, Phathom Pharmaceuticals, Inc. (PHAT), finished the last trading session 0.2% lower at $4.87. PHAT has returned -3.6% over the past month.Phathom Pharmaceuticals' consensus EPS estimate for the upcoming report has changed -2.4% over the past month to -$1.06. Compared to the company's year-ago EPS, this represents a change of +25.4%. Phathom Pharmaceuticals currently boasts a Zacks Rank of #4 (Sell).Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 report Rhythm Pharmaceuticals, Inc. (RYTM): Free Stock Analysis Report Phathom Pharmaceuticals, Inc. (PHAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks