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Cross Country Healthcare (CCRN - Free Report) is a Zacks Rank #5 (Strong Sell) has seen earnings estimates slide lower recently. This stock was added to the Stocks Under $10 service that I manage back in November of 2020 and was removed in July of 2022 for a 221% gain. Imgaine my surprise to see it as a Zacks Rank #5 (Strong Sell) after I had been a strong advocate for the name for nearly two years!
This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company operates in two segments, Nurse and Allied Staffing, and Physician Staffing. It serves various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of CCRN, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CCRN I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.66 to $2.56 over the last 60 days.
The next year has moved from $2.73 to $2.55 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Potential Legislation
Investors who are looking to the longer term should do a little more research in the space. There are whispers that in the future that legislation will require a minimum number of nurses at a given hospital or healthcare facility. The details are still yet to be hammered out, but a new law like that could be a long term tail wind for CCRN.
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Bear Of The Day: Cross Country Healthcare (CCRN)
Cross Country Healthcare (CCRN - Free Report) is a Zacks Rank #5 (Strong Sell) has seen earnings estimates slide lower recently. This stock was added to the Stocks Under $10 service that I manage back in November of 2020 and was removed in July of 2022 for a 221% gain. Imgaine my surprise to see it as a Zacks Rank #5 (Strong Sell) after I had been a strong advocate for the name for nearly two years!
This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company operates in two segments, Nurse and Allied Staffing, and Physician Staffing. It serves various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of CCRN, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CCRN I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.66 to $2.56 over the last 60 days.
The next year has moved from $2.73 to $2.55 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Potential Legislation
Investors who are looking to the longer term should do a little more research in the space. There are whispers that in the future that legislation will require a minimum number of nurses at a given hospital or healthcare facility. The details are still yet to be hammered out, but a new law like that could be a long term tail wind for CCRN.