Strength Seen in Agiliti (AGTI): Can Its 29.1% Jump Turn into More Strength?
Agiliti AGTI shares soared 29.1% in the last trading session to close at $9.86. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% gain over the past four weeks.
Agility scored a strong price increase, on investors’ optimism driven by the announcement that the company has entered into a merger agreement with an affiliate of its majority shareholder, Thomas H. Lee Partners, L.P. (“THL”). THL will acquire all outstanding shares of Agiliti common stock not currently owned by THL and its affiliates and certain management shareholders for $10.00 per share in cash, implying an enterprise value of approximately $2.5 billion. The transaction is expected to close in the first half of 2024, subject to customary closing conditions.
This medical equipment services provider is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $291.99 million, up 3.7% 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 Agiliti, 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 AGTI 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 >>>>
Agiliti is a member of the Zacks Medical Services industry. One other stock in the same industry, HealthEquity HQY, finished the last trading session 1.5% higher at $83.50. HQY has returned 7% over the past month.
For HealthEquity , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.52. This represents a change of +40.5% from what the company reported a year ago. HealthEquity currently has a Zacks Rank of #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Agiliti, Inc. (AGTI) : Free Stock Analysis Report
HealthEquity, Inc. (HQY) : Free Stock Analysis Report
