Strength Seen in eHealth (EHTH): Can Its 18.5% Jump Turn into More Strength?

eHealth (EHTH) shares rallied 18.5% in the last trading session to close at $5.26. 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 8.6% gain over the past four weeks.

EHTH is well-poised to grow on the back of Medicare, Individual and Family, and Small Business performance. Its consumer-centric omnichannel distribution model offers competitive strengths. 

During 2025, EHTH intends to continue to pursue deliberate, targeted scaling of business by focusing on products, demand generation channels, fulfillment processes and market segments leverage its competitive differentiation. 

Its focus on growing investment in Medicare Supplement bodes well thus intends to dedicate Medicare Supplement sales team and expanded carrier offerings. It also plans to advance on digital technology leadership.

Management upped its 2025 revenue, net income and adjusted EBITDA guidance.

This provider of internet-based heath insurance agency services is expected to post quarterly loss of $0.93 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $53.57 million, down 8.3% 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 eHealth, 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 EHTH 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 >>>>

eHealth is part of the Zacks Insurance - Brokerage industry. Willis Towers Watson (WTW), another stock in the same industry, closed the last trading session 0.7% higher at $349.4. WTW has returned 5.4% in the past month.

For Willis Towers Watson, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $3.01. This represents a change of +2.7% from what the company reported a year ago. Willis Towers Watson currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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