Back to top

Image: Bigstock

Performant Healthcare (PHLT) Surges 115.2%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Performant Healthcare (PHLT - Free Report) shares soared 115.2% in the last trading session to close at $7.64. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.3% loss over the past four weeks.

Performant Healthcare recorded a strong price rise on investors’ optimism surrounding it’s preliminary second quarter 2025 financial results announced on August 1. The company expects second quarter revenues of approximately $37.8 million, net income of approximately $2.1 million, and adjusted EBITDA of approximately $6.2 million. Additionally, Performant Healthcare has entered into a definitive agreement to be acquired by Machinify, a healthcare intelligence leader and portfolio company of New Mountain Capital.  

This provider of audit and recovery services is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +25%. Revenues are expected to be $31 million, up 5.6% 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 Performant Healthcare, 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 PHLT 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 >>>>

Performant Healthcare belongs to the Zacks Medical Services industry. Another stock from the same industry, Enhabit (EHAB - Free Report) , closed the last trading session 3% lower at $6.52. Over the past month, EHAB has returned -12.2%.

Enhabit's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.1. Compared to the company's year-ago EPS, this represents a change of +42.9%. Enhabit currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Enhabit, Inc. (EHAB) - free report >>

Performant Healthcare, Inc. (PHLT) - free report >>

Published in