Strength Seen in PACS Group, Inc. (PACS): Can Its 21.8% Jump Turn into More Strength?

PACS Group, Inc. PACS shares soared 21.8% in the last trading session to close at $12.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.2% loss over the past four weeks.

Pacs Group recorded a strong price rise on investors’ optimism surrounding the announcement that its audit committee investigation is substantially complete and the audit committee has not found any basis to question the integrity of the company’s top management. The company will restate its previously issued financial statements as of and for the three months ended on March 31, 2024 and six months ended on June 30, 2024. 

This company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +10.5%. Revenues are expected to be $1.09 billion, up 16.5% 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 PACS 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 PACS 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 >>>>

PACS Group, Inc. is part of the Zacks Medical Services industry. Sotera Health Company SHC, another stock in the same industry, closed the last trading session 3.3% lower at $10.95. SHC has returned -11.6% in the past month.

For Sotera Health, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of -10.5% from what the company reported a year ago. Sotera Health 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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