Evolent Health EVH shares rallied 6.9% in the last trading session to close at $9.25. 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 17.5% gain over the past four weeks.
Evolent Health recorded a strong price rise on investors’ optimism surrounding its 2025 financial guidance amid favorable oncology cost trends. The company reiterated its Q2 2025 adjusted EBITDA guidance of $33-$40M and its full year adjusted EBITDA guidance of $135-165M.
This health care software and consulting services provider is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -70%. Revenues are expected to be $457.4 million, down 29.3% 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 Evolent Health, 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 EVH 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 >>>>
Evolent Health is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, American Well Corporation AMWL, finished the last trading session 0.9% lower at $6.75. AMWL has returned -8% over the past month.
American Well's consensus EPS estimate for the upcoming report has changed +5.7% over the past month to -$1.9. Compared to the company's year-ago EPS, this represents a change of +43.5%. American Well currently boasts a Zacks Rank of #3 (Hold).
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Evolent Health, Inc (EVH): Free Stock Analysis Report American Well Corporation (AMWL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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