Strength Seen in Surgery Partners (SGRY): Can Its 5.0% Jump Turn into More Strength?
Surgery Partners SGRY shares soared 5% in the last trading session to close at $41.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.6% gain over the past four weeks.
Surgery Partners scored a strong price increase, driven by the investor’s optimism following the company delivering a strong top-line and same facility revenue, margin expansion and capital deployment in the first quarter of 2023.
The company expanded its foothold in several new markets via strategic partnerships with two leading health systems - Intermountain Health and OhioHealth. This is likely to have further investors’ confidence in the stock.
This surgical facilities operator is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $671.75 million, up 9.2% 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 Surgery Partners, 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 SGRY 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 >>>>
Surgery Partners belongs to the Zacks Medical Services industry. Another stock from the same industry, Pediatrix Medical Group MD, closed the last trading session 2.7% lower at $13.85. Over the past month, MD has returned 3.4%.
For Pediatrix Medical Group , the consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $0.39. This represents a change of -17% from what the company reported a year ago. Pediatrix Medical Group currently has a Zacks Rank of #3 (Hold).
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