Definitive Healthcare Corp. (DH) Soars 7.1%: Is Further Upside Left in the Stock?
Definitive Healthcare Corp. DH shares rallied 7.1% in the last trading session to close at $7.58. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.9% loss over the past four weeks.
Definitive Healthcare scored a strong price rise on investor’s optimism, surrounding its impending third quarter 2023 financial results, which is slated to release on Nov 2, post the closing bell.
The Zacks Consensus Estimate for the third quarter revenue suggests a growth of 10.8%, while earnings are expected to remain flat. In the last reported quarter, the company grew its enterprise client base by 8% year over year and also made two significant announcements to expand its competitive differentiation.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $63.6 million, up 10.8% 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 Definitive Healthcare Corp., 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 DH 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 >>>>
Definitive Healthcare Corp. is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Augmedix, Inc. AUGX, finished the last trading session 3.6% lower at $5.38. AUGX has returned 6.3% over the past month.
For Augmedix, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.12. This represents a change of +20% from what the company reported a year ago. Augmedix, Inc. currently has a Zacks Rank of #3 (Hold).
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