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Option Care (OPCH) Stock Jumps 5.6%: Will It Continue to Soar?

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Option Care (OPCH - Free Report) shares soared 5.6% in the last trading session to close at $28.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.6% loss over the past four weeks.

Option Care saw solid price increase, courtesy of its encouraging first-quarter 2022 results. While reported earnings surpassed the Zacks Consensus Estimate by 30.6%, revenues beat the consensus mark by 9.1%. Market is also optimistic regarding the company’s robust revenue guidance.

This infusion and home care services company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +22.2%. Revenues are expected to be $943.16 million, up 9.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Option Care, 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 OPCH 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 >>>>

Option Care is part of the Zacks Medical - Outpatient and Home Healthcare industry. Quest Diagnostics (DGX - Free Report) , another stock in the same industry, closed the last trading session 2.1% higher at $140.31. DGX has returned -3% in the past month.

Quest Diagnostics' consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $2.15. Compared to the company's year-ago EPS, this represents a change of -32.4%. Quest Diagnostics currently boasts a Zacks Rank of #2 (Buy).


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