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Option Care (OPCH) Stock Jumps 8.9%: Will It Continue to Soar?

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Option Care (OPCH - Free Report) shares soared 8.9% in the last trading session to close at $32.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.6% loss over the past four weeks.

Option Care recorded a strong price increase backed by its robust overall second-quarter 2022 results, which it reported in July. During the reported quarter, it completed the acquisition of Specialty Pharmacy Nursing Network. Also, anticipated better-than-expected third-quarter 2022 results with the latest Zacks Consensus Estimate showing significant upward revision for its quarterly revenues and earnings compared to the year-ago reported numbers raise optimism about the stock.

This infusion and home care services company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $994.38 million, up 11.5% 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 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. Chemed (CHE - Free Report) , another stock in the same industry, closed the last trading session 0.2% higher at $445.55. CHE has returned -5.6% in the past month.

Chemed's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $4.63. Compared to the company's year-ago EPS, this represents a change of -8.5%. Chemed currently boasts a Zacks Rank of #4 (Sell).


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