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LifeStance Health Group (LFST) shares soared 5.8% in the last trading session to close at $6.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6% loss over the past four weeks.
The upside can be attributed to relief-rally across global markets following the announcement of a 90-day pause on tariff hike by the United States.
This outpatient mental health services provider is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $333.08 million, up 10.9% 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 LifeStance Health, the consensus EPS estimate for the quarter has been revised 11.1% 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 LFST 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 >>>>
LifeStance Health belongs to the Zacks Medical - Outpatient and Home Healthcare industry. Another stock from the same industry, Aveanna Healthcare (AVAH), closed the last trading session 1.9% higher at $4.89. Over the past month, AVAH has returned 25.7%.
Aveanna's consensus EPS estimate for the upcoming report has changed +40% over the past month to $0. Compared to the company's year-ago EPS, this represents a change of +100%. Aveanna currently boasts a Zacks Rank of #1 (Strong Buy).
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LifeStance Health Group, Inc. (LFST) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).