U.S. Physical Therapy (USPH) Surges 3.7%: Is This an Indication of Further Gains?
U.S. Physical Therapy USPH shares ended the last trading session 3.7% higher at $115.07. 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 1.1% loss over the past four weeks.
U.S. Physical Therapy recorded a strong price increase after it announced an acquisition of a physical therapy practice with four clinics in May. U.S. Physical Therapy and its local partners together acquired a 75% equity interest in the practice, while the current practice owners retained a 25% equity interest. Anticipated better-than-expected second quarter 2023 revenues with the latest Zacks Consensus Estimate showing significant upward revision for the metric compared to the year-ago reported numbers raises optimism about the stock. The company is expected to release its second-quarter earnings on Aug 3, 2023.
This physician staffing services company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -18.9%. Revenues are expected to be $149.72 million, up 6.4% 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 U.S. Physical Therapy, 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 USPH 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 >>>>
U.S. Physical Therapy is part of the Zacks Medical - Outpatient and Home Healthcare industry. DaVita HealthCare DVA, another stock in the same industry, closed the last trading session 0.4% higher at $97.62. DVA has returned -3.6% in the past month.
DaVita HealthCare's consensus EPS estimate for the upcoming report has changed +2.2% over the past month to $1.64. Compared to the company's year-ago EPS, this represents a change of -28.7%. DaVita HealthCare currently boasts a Zacks Rank of #3 (Hold).
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