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Life Time Group Holdings, Inc. (LTH) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Life Time Group Holdings, Inc. (LTH - Free Report) ? Shares have been on the move with the stock up 30.3% over the past month. The stock hit a new 52-week high of $21.16 in the previous session. Life Time Group Holdings, Inc. has gained 73.8% since the start of the year compared to the -0.8% move for the Zacks Medical sector and the -7.9% return for the Zacks Medical Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 25, 2023, Life Time Group Holdings, Inc. reported EPS of $0.1 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 0.03%.
For the current fiscal year, Life Time Group Holdings, Inc. is expected to post earnings of $0.38 per share on $2.24 billion in revenues. This represents a 311.11% change in EPS on a 22.75% change in revenues. For the next fiscal year, the company is expected to earn $0.55 per share on $2.52 billion in revenues. This represents a year-over-year change of 45.39% and 12.85%, respectively.
Valuation Metrics
Life Time Group Holdings, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Life Time Group Holdings, Inc. has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 55.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.7X. On a trailing cash flow basis, the stock currently trades at 20X versus its peer group's average of 10.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Life Time Group Holdings, Inc. currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Life Time Group Holdings, Inc. fits the bill. Thus, it seems as though Life Time Group Holdings, Inc. shares could have potential in the weeks and months to come.
How Does LTH Stack Up to the Competition?
Shares of LTH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AMN Healthcare Services Inc (AMN - Free Report) . AMN has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. AMN Healthcare Services Inc beat our consensus estimate by 14.29%, and for the current fiscal year, AMN is expected to post earnings of $8.28 per share on revenue of $4.11 billion.
Shares of AMN Healthcare Services Inc have gained 4.1% over the past month, and currently trade at a forward P/E of 10.43X and a P/CF of 5.57X.
The Medical Services industry may rank in the bottom 65% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for LTH and AMN, even beyond their own solid fundamental situation.
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Life Time Group Holdings, Inc. (LTH) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Life Time Group Holdings, Inc. (LTH - Free Report) ? Shares have been on the move with the stock up 30.3% over the past month. The stock hit a new 52-week high of $21.16 in the previous session. Life Time Group Holdings, Inc. has gained 73.8% since the start of the year compared to the -0.8% move for the Zacks Medical sector and the -7.9% return for the Zacks Medical Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 25, 2023, Life Time Group Holdings, Inc. reported EPS of $0.1 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 0.03%.
For the current fiscal year, Life Time Group Holdings, Inc. is expected to post earnings of $0.38 per share on $2.24 billion in revenues. This represents a 311.11% change in EPS on a 22.75% change in revenues. For the next fiscal year, the company is expected to earn $0.55 per share on $2.52 billion in revenues. This represents a year-over-year change of 45.39% and 12.85%, respectively.
Valuation Metrics
Life Time Group Holdings, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Life Time Group Holdings, Inc. has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 55.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.7X. On a trailing cash flow basis, the stock currently trades at 20X versus its peer group's average of 10.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Life Time Group Holdings, Inc. currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Life Time Group Holdings, Inc. fits the bill. Thus, it seems as though Life Time Group Holdings, Inc. shares could have potential in the weeks and months to come.
How Does LTH Stack Up to the Competition?
Shares of LTH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AMN Healthcare Services Inc (AMN - Free Report) . AMN has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.
Earnings were strong last quarter. AMN Healthcare Services Inc beat our consensus estimate by 14.29%, and for the current fiscal year, AMN is expected to post earnings of $8.28 per share on revenue of $4.11 billion.
Shares of AMN Healthcare Services Inc have gained 4.1% over the past month, and currently trade at a forward P/E of 10.43X and a P/CF of 5.57X.
The Medical Services industry may rank in the bottom 65% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for LTH and AMN, even beyond their own solid fundamental situation.