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U.S. Physical Therapy (USPH) Soars 17.4%: Is Further Upside Left in the Stock?

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U.S. Physical Therapy (USPH - Free Report) shares rallied 17.4% in the last trading session to close at $119.50. 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 13.2% loss over the past four weeks.

U.S. Physical Therapy witnessed solid price appreciation following the optimism stemming from sustained strength in patient volumes throughout the second quarter of 2021 (according to a recent regulatory filing) as average visits per day rose to 30.0. This marked the highest number of average visits per day for a quarter in the company’s history and also surpassing pre-COVID volume levels. This apart, salaries and related labor costs for the company’s physical therapy operations in the second quarter were sequentially lower.

This physician staffing services company is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of +84.6%. Revenues are expected to be $123.07 million, up 46.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For U.S. Physical Therapy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on USPH 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 >>>>


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