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DocGo Inc. (DCGO) Surges 5.0%: Is This an Indication of Further Gains?

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DocGo Inc. (DCGO - Free Report) shares soared 5% in the last trading session to close at $9.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.9% gain over the past four weeks.

DocGO scored a strong price increase, driven by the investor’s optimism surrounding the company’s recent presentation at the Investor Day event held on June 20. The company demonstrated its latest technology, provided updates on the RPM pilot and go to market strategy as well as details of the new payer programs and partnerships.

In addition, DocGo has projected an annual run-rate of $1 billion by the end of 2025. This might have further boosted investor’s confidence in the stock.

This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $119.63 million, up 9.2% 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 DocGo Inc., 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 DCGO 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 >>>>

DocGo Inc. belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , closed the last trading session 1.6% higher at $445.03. Over the past month, ELV has returned -4.3%.

For Elevance Health, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $8.83. This represents a change of +9.8% from what the company reported a year ago. Elevance Health currently has a Zacks Rank of #3 (Hold).

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