LifeStance Health (LFST) Soars 6.6%: Is Further Upside Left in the Stock?
LifeStance Health Group LFST shares soared 6.6% in the last trading session to close at $6.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.3% loss over the past four weeks.
LifeStance Health Group has been recording a strong price increase after it announced on Jan 19, 2024 that Dr. Ujjwal Ramtekkar will join the company as Chief Medical Officer, effective Jan 22. Per management, Dr. Ramtekkar, will lead all clinical services, ensuring that the company’s psychiatric and psychotherapy clinicians are enabled to deliver high-quality, personalized patient care that meets and exceeds professional standards. Also, anticipated better-than-expected fourth-quarter 2023 revenues and loss per share, with the latest Zacks Consensus Estimate showing significant upward revisions for the metrices compared to the year-ago reported number, raise optimism about the stock. The company is expected to release its fourth-quarter earnings on Mar 13.
This outpatient mental health services provider is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +30.8%. Revenues are expected to be $263.14 million, up 14.7% 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 LifeStance Health, 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 LFST 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 >>>>
LifeStance Health is a member of the Zacks Medical - Outpatient and Home Healthcare industry. One other stock in the same industry, U.S. Physical Therapy USPH, finished the last trading session 0.3% lower at $94.37. USPH has returned 1.4% over the past month.
For U.S. Physical Therapy , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.57. This represents a change of -1.7% from what the company reported a year ago. U.S. Physical Therapy currently has a Zacks Rank of #4 (Sell).
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LifeStance Health Group, Inc. (LFST) : Free Stock Analysis Report
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