The Pennant Group, Inc. (PNTG) Stock Jumps 6%: Will It Continue to Soar?

The Pennant Group, Inc. (PNTG) shares soared 6% in the last trading session to close at $14.31. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.8% loss over the past four weeks.

Pennant Group witnessed solid price appreciation following the news wherein the company announced new leadership structure. Per the news release Brent Guerisoli, current President of the company, has been appointed to succeed Daniel Walker as Chief Executive Officer, effective August 1, 2022. Meanwhile, Daniel Walker will continue to serve as chairman of Pennant Group’s Board of Directors.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -17.7%. Revenues are expected to be $113.14 million, up 2.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For The Pennant Group, Inc., 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 PNTG 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 >>>>

The Pennant Group, Inc. is part of the Zacks Medical - Outpatient and Home Healthcare industry. Aveanna Healthcare (AVAH), another stock in the same industry, closed the last trading session 3% lower at $2.63. AVAH has returned -12% in the past month.

Aveanna's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. Compared to the company's year-ago EPS, this represents a change of -20%. Aveanna currently boasts a Zacks Rank of #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.