Surgery Partners (SGRY) Soars 15.7%: Is Further Upside Left in the Stock?

Surgery Partners SGRY shares ended the last trading session 15.7% higher at $15.8. 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 2.1% loss over the past four weeks.

Surgery Partners scored a strong price increase, driven by investors’ optimism following the announcement that it has completed the sale of its ownership interests in its Idaho Falls facilities to Intermountain Health. Under the terms of the Securities Purchase Agreements, Surgery Partners received $797 million in gross proceeds and $587 million in net cash proceeds at closing, subject to customary post-closing adjustments. 

This surgical facilities operator is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -30.8%. Revenues are expected to be $856.73 million, up 4.3% 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 40% 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 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 is part of the Zacks Medical Services industry. Ascend Wellness Holdings, Inc. AAWH, another stock in the same industry, closed the last trading session 18.5% higher at $0.59. AAWH has returned -3.6% in the past month.

For Ascend Wellness Holdings, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.13. This represents no change from what the company reported a year ago. Ascend Wellness Holdings, Inc. currently has a Zacks Rank of #3 (Hold).

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