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Option Care (OPCH) Moves 8.4% Higher: Will This Strength Last?

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Option Care (OPCH - Free Report) shares ended the last trading session 8.4% higher at $34.75. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.4% loss over the past four weeks.

The sharp rise in OPCH shares can be attributed to stronger-than-expected preliminary 2025 results and a major increase in shareholder returns, led by a sizable buyback expansion. The company guided Q4 revenue to $1.46–$1.47 billion and adjusted EPS to 46 cents to 49 cents, while 2026 adjusted EPS guidance of $1.82–$1.92 came in above consensus, reinforcing confidence in earnings durability. More importantly, the board boosted its share repurchase authorization by $500 million to $1.0 billion, signaling strong cash flow confidence and making the expanded buyback the central catalyst behind the stock’s sharp move.

This infusion and home care services company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +31.4%. Revenues are expected to be $1.46 billion, up 8.2% 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 Option Care, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 a member of the Zacks Medical - Outpatient and Home Healthcare industry. One other stock in the same industry, U.S. Physical Therapy (USPH - Free Report) , finished the last trading session 1.7% higher at $85.72. USPH has returned 3.9% over the past month.

For U.S. Physical Therapy, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.67. This represents a change of +3.1% from what the company reported a year ago. U.S. Physical Therapy currently has a Zacks Rank of #4 (Sell).


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