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The Pennant Group, Inc. (PNTG) Surges 8.4%: Is This an Indication of Further Gains?

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The Pennant Group, Inc. (PNTG - Free Report) shares rallied 8.4% in the last trading session to close at $15.35. 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 6.4% gain over the past four weeks.

The Pennant Group, Inc. recorded a strong price increase after it announced that that it has closed a home health joint venture (JV) with well-known non-profit integrated health system, John Muir Health. The closing of the JV occurred effective Jan 1, 2024. Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. The Pennant Group, Inc. is expected to release its fourth-quarter earnings on Feb 22, 2024.

This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +22.2%. Revenues are expected to be $136.79 million, up 9.7% 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 The Pennant Group, 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 PNTG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

The Pennant Group, Inc. belongs to the Zacks Medical - Outpatient and Home Healthcare industry. Another stock from the same industry, Chemed (CHE - Free Report) , closed the last trading session 0.7% lower at $566.18. Over the past month, CHE has returned -0.2%.

For Chemed, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $6.25. This represents a change of +16% from what the company reported a year ago. Chemed currently has a Zacks Rank of #3 (Hold).

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