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AdaptHealth Corp. (AHCO) Surges 8.3%: Is This an Indication of Further Gains?

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AdaptHealth Corp. (AHCO - Free Report) shares rallied 8.3% in the last trading session to close at $24.15. 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 22.7% gain over the past four weeks.

AdaptHealth recorded a strong price increase following the surfacing of the news of it joining the S&P SmallCap 600, effective prior to the opening of trading on Aug 4. This inclusion was on the back of S&P 500 constituent Cummins Inc. acquiring Meritor in a deal, which is expected to be completed soon pending final closing conditions. Also, better-than-expected second-quarter 2022 performances raise optimism about the stock. AdaptHealth is set to announce its quarterly results on Aug 9.

This company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +390.9%. Revenues are expected to be $728.87 million, up 18.1% 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 AdaptHealth Corp., 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 AHCO 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 >>>>

AdaptHealth Corp. is a member of the Zacks Medical - Products industry. One other stock in the same industry, Perrigo (PRGO - Free Report) , finished the last trading session 0.3% lower at $42.50. PRGO has returned 3.9% over the past month.

Perrigo's consensus EPS estimate for the upcoming report has changed -1.9% over the past month to $0.44. Compared to the company's year-ago EPS, this represents a change of -12%. Perrigo currently boasts a Zacks Rank of #4 (Sell).

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