Surgery Partners (SGRY) Soars 9.9%: Is Further Upside Left in the Stock?
Surgery Partners SGRY shares rallied 9.9% in the last trading session to close at $24.89. 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 12.2% loss over the past four weeks.
Surgery Partners scored a strong price increase, driven by investor’s optimism surrounding its impending third quarter 2023 financial results, which is slated to release on Nov 7, before the opening bell.
The Zacks Consensus Estimate for the third quarter revenue suggests a growth of 8.1%, while earnings are expected to improve 800%. In the second quarter, the company delivered revenues and adjusted EBITDA ahead of its expectations and also revised the full year adjusted EBITDA guidance to greater than $435 million (earlier, greater than $430 million). This might have boosted further confidence in the stock.
This surgical facilities operator is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +800%. Revenues are expected to be $670.74 million, up 8.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Surgery Partners, the consensus EPS estimate for the quarter has been revised 9.8% 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 SGRY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). 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, MDxHealth SA Sponsored ADR MDXH, closed the last trading session 12% higher at $2.99. Over the past month, MDXH has returned 21.3%.
MDxHealth SA Sponsored ADR's consensus EPS estimate for the upcoming report has changed +2.2% over the past month to -$0.31. Compared to the company's year-ago EPS, this represents a change of -520%. MDxHealth SA Sponsored ADR currently boasts a Zacks Rank of #3 (Hold).
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Surgery Partners, Inc. (SGRY) : Free Stock Analysis Report
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