Strength Seen in Sotera Health Company (SHC): Can Its 17.3% Jump Turn into More Strength?
Sotera Health Company SHC shares ended the last trading session 17.3% higher at $17.60. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.9% gain over the past four weeks.
Sotera Health scored a strong price increase, driven by the investor’s optimism surrounding the company’s finalization of the January 2023 settlements of ethylene oxide claims against Sterigenics in Illinois.
Sterigenics has elected to proceed with the settlements, after 879 of the 882 claimants eligible to participate in the settlement program have opted in.
This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $261.05 million, down 2.1% 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 Sotera Health Company, 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 SHC 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 >>>>
Sotera Health Company belongs to the Zacks Medical Services industry. Another stock from the same industry, Agilon Health AGL, closed the last trading session 1.9% lower at $16.74. Over the past month, AGL has returned -15.8%.
For Agilon , the consensus EPS estimate for the upcoming report has changed +14.3% over the past month to -$0.02. This represents a change of +50% from what the company reported a year ago. Agilon currently has a Zacks Rank of #3 (Hold).
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