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Community Health Systems (CYH) Soars 14.6%: Is Further Upside Left in the Stock?
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Community Health Systems (CYH - Free Report) shares rallied 14.6% in the last trading session to close at $11.28. 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 6.4% gain over the past four weeks.
The company has been actively divesting hospitals over time to reduce its debt load and focus only on core operations that comprise large hospitals. It is also steadily gaining on the back of growing demand for telehealth services. Community Health witnessed a massive drive in telehealth services during 2020.
Evidently, the company is well-poised for further capitalizing on telehealth services amid the current turbulent scenario.
It added 250 beds over the past few years along with 50 new surgical and procedural suites and has plans to open another replacement hospital in Fort Wayne during 2021.
Other factors, such as lowering expenses also contributed to growth. Going forward, its expenses are expected to improve on a planned business rejig.
The company has been actively divesting hospitals over time to reduce its debt load and focus only on core operations that comprise large hospitals. It is also steadily gaining on the back of growing demand for telehealth services. Community Health witnessed a massive drive in telehealth services during 2020.
Evidently, the company is well-poised for further capitalizing on telehealth services amid the current turbulent scenario.
It added 250 beds over the past few years along with 50 new surgical and procedural suites and has plans to open another replacement hospital in Fort Wayne during 2021.
Other factors, such as lowering expenses also contributed to growth. Going forward, its expenses are expected to improve on a planned business rejig.
The company has been actively divesting hospitals over time to reduce its debt load and focus only on core operations that comprise large hospitals. It is also steadily gaining on the back of growing demand for telehealth services. Community Health witnessed a massive drive in telehealth services during 2020.
Evidently, the company is well-poised for further capitalizing on telehealth services amid the current turbulent scenario.
It added 250 beds over the past few years along with 50 new surgical and procedural suites and has plans to open another replacement hospital in Fort Wayne during 2021. Other factors, such as lowering expenses also contributed to growth. Going forward, its expenses are expected to improve on a planned business rejig.
It added 250 beds over the past few years along with 50 new surgical and procedural suites and has plans to open another replacement hospital in Fort Wayne during 2021. Other factors, such as lowering expenses also contributed to growth. Going forward, its expenses are expected to improve on a planned business rejig.
It added 250 beds over the past few years along with 50 new surgical and procedural suites and has plans to open another replacement hospital in Fort Wayne during 2021. Other factors, such as lowering expenses also contributed to growth. Going forward, its expenses are expected to improve on a planned business rejig.
Price and Consensus
This operator of accute care hospitals is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +94.3%. Revenues are expected to be $2.98 billion, down 1.6% 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 Community Health Systems, the consensus EPS estimate for the quarter has been revised 70% 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 CYH going forward to see if this recent jump can turn into more strength down the road.
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Community Health Systems (CYH) Soars 14.6%: Is Further Upside Left in the Stock?
Community Health Systems (CYH - Free Report) shares rallied 14.6% in the last trading session to close at $11.28. 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 6.4% gain over the past four weeks.
Price and Consensus
This operator of accute care hospitals is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +94.3%. Revenues are expected to be $2.98 billion, down 1.6% 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 Community Health Systems, the consensus EPS estimate for the quarter has been revised 70% 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 CYH 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 >>>>