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Phreesia (PHR) Soars 5.9%: Is Further Upside Left in the Stock?

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Phreesia (PHR - Free Report) shares rallied 5.9% in the last trading session to close at $25.53. 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 24.7% loss over the past four weeks.

Phreesia recorded a strong price rise on investors’ optimism surrounding its impending fiscal fourth-quarter 2022 financial results, which is slated to release on March 30 post the closing bell. In its last-reported quarter earnings call, the company noted that it has reached an important milestone in September 2021, achieving over 100 million patient visits enabled by its platform during the past twelve months, thereby boosting investors’ confidence in the stock.

This developer of health care software is expected to post quarterly loss of $1.05 per share in its upcoming report, which represents a year-over-year change of -483.3%. Revenues are expected to be $55.83 million, up 33.5% 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 Phreesia, 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 PHR 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 >>>>

Phreesia belongs to the Zacks Medical Info Systems industry. Another stock from the same industry, Omnicell (OMCL - Free Report) , closed the last trading session 3.8% higher at $136.69. Over the past month, OMCL has returned -5.6%.

Omnicell's consensus EPS estimate for the upcoming report has changed -2.4% over the past month to $0.71. Compared to the company's year-ago EPS, this represents a change of -14.5%. Omnicell currently boasts a Zacks Rank of #5 (Strong Sell).


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