Strength Seen in Alignment Healthcare (ALHC): Can Its 6.5% Jump Turn into More Strength?
Alignment Healthcare ALHC shares soared 6.5% in the last trading session to close at $6.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.3% loss over the past four weeks.
Alignment Healthcare scored a strong price increase, on investors’ optimism driven by the company’s announcement to bring health care industry veterans on board as new SVPs. The newest executives will ensure success of strategic operating plans and engage in meaningful relationships to deliver state-of-the-art health plan performance, supporting the company’s overall growth. Additionally, market is also upbeat about the company’s mid-2023 revenue guidance, representing nearly 20% growth year over year.
This Medicare Advantage insurer is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -34.8%. Revenues are expected to be $431.08 million, up 24.8% 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 Alignment Healthcare, the consensus EPS estimate for the quarter has been revised 13.5% 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 ALHC 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 >>>>
Alignment Healthcare is part of the Zacks Medical Services industry. Premier, Inc. PINC, another stock in the same industry, closed the last trading session 0.2% higher at $32.44. PINC has returned 1.2% in the past month.
Premier, Inc.'s consensus EPS estimate for the upcoming report has changed -5.8% over the past month to $0.68. Compared to the company's year-ago EPS, this represents a change of +19.3%. Premier, Inc. currently boasts a Zacks Rank of #3 (Hold).
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