Phreesia (PHR) Moves 13.9% Higher: Will This Strength Last?

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Phreesia PHR shares ended the last trading session 13.9% higher at $21.19. 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 12.9% loss over the past four weeks.

Phreesia scored a strong price increase, driven by investors’ optimism surrounding its impending fiscal 2025 third-quarter results, slated to be released on Dec. 9 after the closing bell. In the fiscal second quarter, Phreesia reached a crucial milestone by crossing over to positive free cash flow, signaling a new phase to deploy internally generated cash to drive stakeholder value.

This developer of health care software is expected to post quarterly loss of $0.29 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $106 million, up 15.7% 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 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 PHR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). 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. P3 Health Partners Inc. PIII, another stock in the same industry, closed the last trading session 5.4% higher at $0.37. PIII has returned -3% in the past month.

P3 Health Partners's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of +75%. P3 Health Partners currently boasts a Zacks Rank of #3 (Hold).

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