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eHealth (EHTH) Stock Jumps 6.4%: Will It Continue to Soar?

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eHealth (EHTH - Free Report) shares rallied 6.4% in the last trading session to close at $10.45. 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 0.8% gain over the past four weeks.

eHealth is expected to benefit from strong momentum in Medicare Advantage enrollment growth. The company has made significant progress toward enhancing tele sales organization. Higher commission revenues as well as a carrier dedicated business model are likely to boost the revenues. 

The company stays focused to progress on local market focused, omni-channel enrollment engine to drive higher conversions and greater margins, enhance eHealth’s comprehensive product portfolio beyond Medicare Advantage agency business to drive year-round growth. These should continue to drive revenue growth and generate positive adjusted EBITDA.

This provider of internet-based heath insurance agency services is expected to post quarterly earnings of $1.91 per share in its upcoming report, which represents a year-over-year change of +18.6%. Revenues are expected to be $270.08 million, up 9.1% 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 belongs to the Zacks Insurance - Brokerage industry. Another stock from the same industry, Ryan Specialty Group (RYAN - Free Report) , closed the last trading session 2.2% higher at $68.61. Over the past month, RYAN has returned 1.3%.

For Ryan Specialty, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.47. This represents a change of +34.3% from what the company reported a year ago. Ryan Specialty currently has a Zacks Rank of #3 (Hold).


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