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AdaptHealth Corp. (AHCO) Stock Jumps 5.2%: Will It Continue to Soar?

AdaptHealth Corp. AHCO shares ended the last trading session 5.2% higher at $20.15. 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 10.4% loss over the past four weeks.

AdaptHealth recorded a strong price increase following its presentation to mark the Capital Markets Day on Sep 16, where it highlighted its progress executing strategy to transform connected healthcare at home. The company also stressed on its plan to pioneer the shift to connected health solutions. AdaptHealth also reported robust overall second-quarter 2022 top line results on Aug 9, raising optimism.

This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +90%. Revenues are expected to be $739.54 million, up 13.2% 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 AdaptHealth Corp., 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 AHCO 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 >>>>

AdaptHealth Corp. is a member of the Zacks Medical - Products industry. One other stock in the same industry, Phibro Animal Health PAHC, finished the last trading session 1.3% higher at $14.47. PAHC has returned -22% over the past month.

For Phibro , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.27. This represents a change of +8% from what the company reported a year ago. Phibro currently has a Zacks Rank of #4 (Sell).

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