Nextgen Healthcare (NXGN) Surges 6.2%: Is This an Indication of Further Gains?
Nextgen Healthcare NXGN shares rallied 6.2% in the last trading session to close at $19.33. 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 10% gain over the past four weeks.
NextGen Healthcare recorded a strong price increase after it announced an expanded alliance with Luma Health to equip ambulatory organizations nationwide with AI-enhanced solutions for patient communications, beginning with intake and self-scheduling. Anticipated better-than-expected second-quarter fiscal 2024 revenues and earnings with the latest Zacks Consensus Estimate showing significant upward revisions for the metrices compared to the year-ago reported numbers also raise optimism. The company is expected to release its fiscal second-quarter earnings on Oct 24, 2023.
This provider of health care information systems is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +4%. Revenues are expected to be $176.33 million, up 10.6% 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 Nextgen Healthcare, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NXGN 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 >>>>
Nextgen Healthcare is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Phreesia PHR, finished the last trading session 5.8% higher at $30.12. PHR has returned -2.8% over the past month.
Phreesia's consensus EPS estimate for the upcoming report has changed +0.9% over the past month to -$0.75. Compared to the company's year-ago EPS, this represents a change of +15.7%. Phreesia currently boasts a Zacks Rank of #3 (Hold).
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