Analyst Forecasts For Progyny, Inc. (NASDAQ:PGNY) Are Surging Higher
Shareholders in Progyny, Inc. (NASDAQ:PGNY) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Progyny has also found favour with investors, with the stock up a worthy 11% to US$24.55 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the most recent consensus for Progyny from its three analysts is for revenues of US$359m in 2020 which, if met, would be a substantial 36% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.041 per share this year. Prior to this update, the analysts had been forecasting revenues of US$302m and earnings per share (EPS) of US$0.016 in 2020. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
View our latest analysis for Progyny
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.8% to US$27.50 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Progyny analyst has a price target of US$29.00 per share, while the most pessimistic values it at US$26.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Progyny's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Progyny's revenue growth will slow down substantially, with revenues next year expected to grow 36%, compared to a historical growth rate of 102% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.0% next year. So it's pretty clear that, while Progyny's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Progyny.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Progyny going out to 2022, and you can see them free on our platform here..
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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