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Tivity Health (TVTY) Moves 5.2% Higher: Will This Strength Last?

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Tivity Health shares soared 5.2% in the last trading session to close at $32.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.3% gain over the past four weeks.

Tivity Health scored a strong price increase driven by the optimism surrounding the company’s solid fourth-quarter 2021 results which demonstrated strength in the core SilverSneakers business.  The company’s reported revenues for the quarter surpassed the Zacks Consensus Estimate by 0.60%. SilverSneakers revenues rose 30% compared to the year-ago period. The company also noted that SilverSneakers virtual visits grew to by 3.5 million in 2021, nearly doubling from 2020 driven by the outstanding experience of the company’s proprietary programming designed by 13 national trainers. Moreover, the market is also upbeat about 2022 guidance wherein the management projects revenues in the range of $540 million and $580 million, with SilverSneakers revenue expected to represent 78% of total revenue.

This wellness program administrator is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $133.22 million, up 23.2% 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 Tivity Health, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TVTY 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 >>>>

Tivity Health is a member of the Zacks Medical Services industry. One other stock in the same industry, Assure Holdings Corp. (IONM - Free Report) , finished the last trading session 2.7% higher at $5.50. IONM has returned 6.2% over the past month.

For Assure Holdings Corp., the consensus EPS estimate for the upcoming report has changed -200% over the past month to -$0.06. This represents a change of +40% from what the company reported a year ago. Assure Holdings Corp. currently has a Zacks Rank of #3 (Hold).


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