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Evolent Health (EVH) Moves 12.8% Higher: Will This Strength Last?

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Evolent Health (EVH - Free Report) shares soared 12.8% in the last trading session to close at $21.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% loss over the past four weeks.

Evolent Health's conservative approach to forecasting prior authorization data is expected to be a significant factor that could lead to second-quarter results landing at the higher end of the company's guidance range.

This health care software and consulting services provider is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $634.18 million, up 35.2% 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 Evolent Health, 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 EVH 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 >>>>

Evolent Health is part of the Zacks Internet - Software industry. Thryv Holdings, Inc. (THRY - Free Report) , another stock in the same industry, closed the last trading session 4.5% higher at $18.71. THRY has returned -5.1% in the past month.

For Thryv, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.41. This represents a change of -4.7% from what the company reported a year ago. Thryv currently has a Zacks Rank of #3 (Hold).


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