Surgery Partners SGRY shares soared 21.2% in the last trading session to close at $25.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.3% gain over the past four weeks.
Surgery Partners recorded a strong price rise on investors’ optimism surrounding the announcement of a non-binding acquisition proposal by Bain Capital Private Equity, LP (“Bain Capital”). Bain Capital proposed to acquire all of the outstanding shares of Surgery Partners not already owned by Bain Capital for a cash consideration of $25.75 per share.
This surgical facilities operator is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -9.1%. Revenues are expected to be $828.84 million, up 12.7% 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 Surgery Partners, 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 SGRY 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 >>>>
Surgery Partners is part of the Zacks Medical Services industry. Teladoc TDOC, another stock in the same industry, closed the last trading session 3% higher at $10.52. TDOC has returned 9.7% in the past month.
For Teladoc , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.21. This represents a change of -23.5% from what the company reported a year ago. Teladoc currently has a Zacks Rank of #3 (Hold).
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