Phreesia (PHR) Soars 6.1%: Is Further Upside Left in the Stock?

Phreesia (PHR) shares ended the last trading session 6.1% higher at $39.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.2% gain over the past four weeks.

Phreesia recorded a strong price rise on investors’ optimism surrounding its impending fiscal fourth-quarter 2023 financial results, which is slated to release on March 22 post the closing bell. The Zacks Consensus Estimate for the fourth quarter revenue suggests a growth of 28.7% and earnings growth of 13.3%. Further, in its last-reported quarter earnings call, the company noted that it is expecting average healthcare services clients to increase by nearly 150 in the fourth quarter of fiscal year 2023. thereby boosting investors’ confidence in the stock.

This developer of health care software is expected to post quarterly loss of $0.78 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $74.68 million, up 28.7% 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 Phreesia, the consensus EPS estimate for the quarter has been revised 3.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PHR 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 >>>>

Phreesia is part of the Zacks Medical Info Systems industry. Schrodinger, Inc. (SDGR), another stock in the same industry, closed the last trading session 9.8% higher at $27.61. SDGR has returned 38% in the past month.

For Schrodinger, Inc. , the consensus EPS estimate for the upcoming report has changed -6.7% over the past month to -$0.50. This represents a change of -16.3% from what the company reported a year ago. Schrodinger, Inc. currently has a Zacks Rank of #3 (Hold).

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