BrightSpring Health Services, Inc. BTSG shares rallied 7.8% in the last trading session to close at $42.1. 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 0.5% gain over the past four weeks.
BrightSpring Health Services scored a strong price increase on investors’ optimism surrounding the company’s robust fourth quarter financial performance. It reported sales of $3.55 billion, up 29.3% year over year. The metric surpassed the Zacks Consensus Estimate by 5.9%. Adjusted EBITDA1 was $184 million, up 40.7% year over year.
This company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +68.4%. Revenues are expected to be $3.34 billion, up 15.9% 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 BrightSpring Health Services, Inc., the consensus EPS estimate for the quarter has been revised 12.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BTSG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
BrightSpring Health Services, Inc. belongs to the Zacks Medical Services industry. Another stock from the same industry, Medpace MEDP, closed the last trading session 0.3% higher at $455.15. Over the past month, MEDP has returned 6%.
Medpace's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.74. Compared to the company's year-ago EPS, this represents a change of +1.9%. Medpace currently boasts a Zacks Rank of #3 (Hold).
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BrightSpring Health Services, Inc. (BTSG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).