Phreesia (PHR) Surges 10.3%: Is This an Indication of Further Gains?
Phreesia PHR shares rallied 10.3% in the last trading session to close at $13.66. 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 32.3% loss over the past four weeks.
Phreesia scored a strong price increase, driven by investor’s optimism surrounding the company’s recent announcement of fiscal 2024 second quarter results, which surpassed the Zacks Consensus Estimate for both earnings and revenues.
The strong performance in the quarter led the company to provide an updated Adjusted EBITDA outlook for fiscal year 2024, ranging to negative $54 million to negative $49 million from a previous range of negative $60 million to negative $55 million. This might have boosted further confidence in the stock.
This developer of health care software is expected to post quarterly loss of $0.71 per share in its upcoming report, which represents a year-over-year change of +6.6%. Revenues are expected to be $90.17 million, up 23.4% 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 Phreesia, 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 PHR 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 >>>>
Phreesia is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Senseonics Holdings SENS, finished the last trading session 2.3% higher at $0.49. SENS has returned -13.8% over the past month.
Senseonics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. Compared to the company's year-ago EPS, this represents a change of +69.2%. Senseonics currently boasts a Zacks Rank of #3 (Hold).
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