Back to top

Image: Bigstock

Hanger (HNGR) Stock Jumps 25%: Will It Continue to Soar?

Read MoreHide Full Article

Hanger shares ended the last trading session 25% higher at $18.43. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% gain over the past four weeks.

Hanger recorded a strong price increase following its entry into a definitive agreement to be acquired by Patient Square Capital, which is a patient-centered healthcare investment firm. The agreement has been unanimously approved by Hanger’s management and the transaction is expected to close in the fourth quarter of 2022, subject to the receipt of stockholder and regulatory approvals, and the satisfaction of other customary closing conditions.

This orthotic and prosthetic company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $306.56 million, up 9.2% 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 Hanger, 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 HNGR 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 >>>>

Hanger is a member of the Zacks Medical - Outpatient and Home Healthcare industry. One other stock in the same industry, Aveanna Healthcare (AVAH - Free Report) , finished the last trading session 9.4% lower at $2.02. AVAH has returned -17.7% over the past month.

For Aveanna, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of -30% from what the company reported a year ago. Aveanna currently has a Zacks Rank of #4 (Sell).


See More Zacks Research for These Tickers


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


Aveanna Healthcare Holdings Inc. (AVAH) - free report >>

Published in