Alignment Healthcare (ALHC) Soars 5.9%: Is Further Upside Left in the Stock?
Alignment Healthcare ALHC shares ended the last trading session 5.9% higher at $6.08. 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 6.5% loss over the past four weeks.
Alignment Healthcare scored a strong price increase, on investors’ optimism driven by the company’s latest presentation at the Morgan Stanley 21st Annual Global Healthcare Conference in New York City, held on Sep 13, 2023. In addition, the company recently welcomed onboard its chief medical officer — the highly distinguished and co-founder of Alignment Healthcare, Dr. Hyong (Ken) Kim. This might have further boosted investor’s confidence in the stock.
This Medicare Advantage insurer is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +18.2%. Revenues are expected to be $442.77 million, up 22.9% 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 Alignment Healthcare, the consensus EPS estimate for the quarter has been revised 2.3% 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 ALHC 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 >>>>
Alignment Healthcare is part of the Zacks Medical Services industry. Avantor, Inc. AVTR, another stock in the same industry, closed the last trading session 0.7% higher at $21.87. AVTR has returned 2.6% in the past month.
For Avantor, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.25. This represents a change of -26.5% from what the company reported a year ago. Avantor, Inc. currently has a Zacks Rank of #4 (Sell).
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