InnovAge Holding Corp. (INNV) Soars 15.4%: Is Further Upside Left in the Stock?
InnovAge Holding Corp. INNV shares rallied 15.4% in the last trading session to close at $6.43. 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 8.6% loss over the past four weeks.
InnovAge scored a strong price increase, on investors’ optimism surrounding its upcoming fourth quarter fiscal 2023 financial results, which is slated to release on Sep 12 post the closing bell.
The Zacks Consensus Estimates for the fiscal 2023 fourth quarter revenues and earnings suggest a year-over-year growth of 1.3% and 66.7% respectively. Further, effective May 1, 2023, the California Department of Health Care Services (DHCS) released InnoVage’s Sacramento PACE center from enrollment sanction, allowing the company to resume enrollment of eligible Sacramento seniors into the PACE program. This might have boosted confidence in the stock.
This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $175.03 million, up 1.3% 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 InnovAge Holding 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 INNV 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 >>>>
InnovAge Holding Corp. is a member of the Zacks Medical Services industry. One other stock in the same industry, Bausch + Lomb BLCO, finished the last trading session 0.2% higher at $17.24. BLCO has returned -5.4% over the past month.
For Bausch + Lomb , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of -45.2% from what the company reported a year ago. Bausch + Lomb currently has a Zacks Rank of #3 (Hold).
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