Back to top

Image: Bigstock

ModivCare (MODV) Surges 5.3%: Is This an Indication of Further Gains?

Read MoreHide Full Article

ModivCare (MODV - Free Report) shares rallied 5.3% in the last trading session to close at $155.53. 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 11% loss over the past four weeks.

ModivCare extended its rally for the third consecutive day on optimism surrounding the Federal Reserve’s (Fed) latest forecast about faster-than-expected recovery of the U.S. economy. For investors’ note, the Fed sharply raised its growth forecast for the United States on Mar 17 to 6.5% for 2021 (from 4.2% growth projection in December) following the sanction of a $1.9-trillion stimulus package and the ongoing rapid vaccine rollout.

Price and Consensus

Price Consensus Chart for MODV

This provider of government-sponsored social services is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +193.1%. Revenues are expected to be $456.47 million, up 24.3% 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 ModivCare, the consensus EPS estimate for the quarter has been revised 21.4% 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 MODV 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 >>>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

ModivCare Inc. (MODV) - free report >>

Published in