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Agilon (AGL) Moves 26.1% Higher: Will This Strength Last?

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Agilon Health (AGL - Free Report) shares soared 26.1% in the last trading session to close at $5.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.1% gain over the past four weeks.

Agilon Health experienced a significant rise in its stock price due to positive sentiment following Bernstein's recent upgrade from Hold to Buy. This upgrade is a result of promising new data that bolster the company's strategic recovery and solid financial fundamentals.

This senior-focused health care company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $1.51 billion, down 6.2% 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 Agilon, the consensus EPS estimate for the quarter has been revised 10% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AGL 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 >>>>

Agilon belongs to the Zacks Medical Services industry. Another stock from the same industry, LifeMD, Inc. (LFMD - Free Report) , closed the last trading session 2.5% lower at $4.82. Over the past month, LFMD has returned 15.8%.

For LifeMD, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. This represents a change of +79% from what the company reported a year ago. LifeMD currently has a Zacks Rank of #3 (Hold).


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