Have you been paying attention to shares of Progyny (PGNY)? Shares have been on the move with the stock up 18.8% over the past month. The stock hit a new 52-week high of $32 in the previous session. Progyny has gained 24.5% since the start of the year compared to the 0.3% move for the Zacks Medical sector and the 0.2% return for the Zacks Medical Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2026, Progyny reported EPS of $0.5 versus consensus estimate of $0.44.
For the current fiscal year, Progyny is expected to post earnings of $2.04 per share on $1.38 in revenues. This represents a 7.94% change in EPS on a 7.01% change in revenues. For the next fiscal year, the company is expected to earn $2.31 per share on $1.49 in revenues. This represents a year-over-year change of 13.24% and 8.26%, respectively.
Valuation Metrics
While Progyny has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Progyny has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.7X. On a trailing cash flow basis, the stock currently trades at 43.4X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 1.48. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Progyny currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Progyny meets the list of requirements. Thus, it seems as though Progyny shares could have potential in the weeks and months to come.
How Does PGNY Stack Up to the Competition?
Shares of PGNY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PACS Group, Inc. (PACS). PACS has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. PACS Group, Inc. beat our consensus estimate by 19.05%, and for the current fiscal year, PACS is expected to post earnings of $2.23 per share on revenue of $5.71 billion.
Shares of PACS Group, Inc. have gained 19.4% over the past month, and currently trade at a forward P/E of 19.4X and a P/CF of 27.07X.
The Medical Services industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PGNY and PACS, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).