GoodRx Holdings, Inc. (GDRX) Soars 21.5%: Is Further Upside Left in the Stock?
GoodRx Holdings, Inc. (GDRX) shares ended the last trading session 21.5% higher at $6.56. 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 6.1% loss over the past four weeks.
The strong rally in GoodRx shares is likely on investors’ optimism related to its new partnership with big pharmacy benefits manager, CVS Health. The companies will launch a new product to help commercially insured customers save on generic drugs.
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 $186.65 million, down 2.7% 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 GoodRx Holdings, Inc., 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 GDRX 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 >>>>
GoodRx Holdings, Inc. is part of the Zacks Medical Services industry. Medpace (MEDP), another stock in the same industry, closed the last trading session 1.4% higher at $241.82. MEDP has returned 8.9% in the past month.
Medpace's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.90. Compared to the company's year-ago EPS, this represents a change of +30.1%. Medpace currently boasts a Zacks Rank of #3 (Hold).
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