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Strength Seen in Cano Health, Inc. (CANO): Can Its 32.2% Jump Turn into More Strength?

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Cano Health, Inc. (CANO - Free Report) shares rallied 32.2% in the last trading session to close at $8.34. 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 9.9% loss over the past four weeks.

Cano Health recorded a strong price rise over investors’ optimism surrounding a Wall Street Journal report about the company receiving buyout interest by giants like Humana and CVS Health. As quoted by Reuters, “A deal could be finalised in the coming weeks, the sources said.”

This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $712.68 million, up 35.3% 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 Cano Health, Inc., the consensus EPS estimate for the quarter has been revised 20% 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 CANO 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 >>>>

Cano Health, Inc. is a member of the Zacks Medical Services industry. One other stock in the same industry, OncoCyte (OCX - Free Report) , finished the last trading session 7.3% lower at $0.80. OCX has returned -3.1% over the past month.

OncoCyte's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.12. Compared to the company's year-ago EPS, this represents a change of -9.1%. OncoCyte currently boasts a Zacks Rank of #2 (Buy).

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