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Privia Health (PRVA) Surges 8.1%: Is This an Indication of Further Gains?

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Privia Health PRVA shares rallied 8.1% in the last trading session to close at $28.26. 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 13.6% gain over the past four weeks.

Privia Health recorded a substantial price increase on optimism surrounding its encouraging first-quarter 2022 results. The company’s revenues of $313.8 million for the reported quarter, recorded an impressive growth of 46.9% year over year. The metric surpassed the Zacks Consensus Estimate by 5.9%. The company’s adjusted earnings per share of 12 cents, improved from the year-ago figure of 6 cents. The metric also beat the Zacks Consensus Estimate of a loss of 3 cents per share. Privia Health’s 2022 revenue guidance that projects 26.8% to 34.5% growth over the year-ago figure instills optimism.

This physician practice management company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -122.2%. Revenues are expected to be $312.04 million, up 38.2% 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 Privia Health, the consensus EPS estimate for the quarter has been revised 566.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PRVA 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 >>>>

Privia Health is part of the Zacks Medical Info Systems industry. Omnicell OMCL, another stock in the same industry, closed the last trading session 2.6% lower at $107.07. OMCL has returned -1.2% in the past month.

For Omnicell , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.88. This represents a change of -9.3% from what the company reported a year ago. Omnicell currently has a Zacks Rank of #2 (Buy).


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