A strong stock as of late has been Pediatrix Medical Group (MD). Shares have been marching higher, with the stock up 36.6% over the past month. The stock hit a new 52-week high of $24.02 in the previous session. Pediatrix Medical Group has gained 81.6% since the start of the year compared to the 6.4% gain for the Zacks Medical sector and the 7.9% return for the Zacks Medical Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 3, 2025, Pediatrix Medical Group reported EPS of $0.67 versus consensus estimate of $0.46 while it beat the consensus revenue estimate by 1.82%.
For the current fiscal year, Pediatrix Medical Group is expected to post earnings of $2.06 per share on $1.91 in revenues. This represents a 36.42% change in EPS on a -5.04% change in revenues. For the next fiscal year, the company is expected to earn $2.08 per share on $1.98 in revenues. This represents a year-over-year change of 0.68% and 3.33%, respectively.
Valuation Metrics
Though Pediatrix Medical Group has recently hit a 52-week high, what is next for Pediatrix Medical Group? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Pediatrix Medical Group has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 13.5X versus its peer group's average of 10.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Pediatrix Medical Group currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Pediatrix Medical Group meets the list of requirements. Thus, it seems as though Pediatrix Medical Group shares could have potential in the weeks and months to come.
How Does MD Stack Up to the Competition?
Shares of MD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Progyny, Inc. (PGNY). PGNY has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Progyny, Inc. beat our consensus estimate by 15.38%, and for the current fiscal year, PGNY is expected to post earnings of $1.93 per share on revenue of $1.27 billion.
Shares of Progyny, Inc. have gained 34.8% over the past month, and currently trade at a forward P/E of 14.63X and a P/CF of 76.3X.
The Medical Services industry may rank in the bottom 59% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for MD and PGNY, even beyond their own solid fundamental situation.
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Pediatrix Medical Group, Inc. (MD): Free Stock Analysis Report Progyny, Inc. (PGNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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