LifeStance Health (LFST) Soars 6.2%: Is Further Upside Left in the Stock?

LifeStance Health Group LFST shares ended the last trading session 6.2% higher at $6.21. 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 21.4% loss over the past four weeks.

LifeStance Health recorded a strong price increase following the appointment of the first Executive Director, Gwen Booth, effective Jul 1, 2022 for its LifeStance Health Foundation (the Foundation). The Foundation is a non-profit organization endowed by LifeStance Health. Management believes that Ms. Gwen’s talents and passion for non-profit work will enable the company to accelerate its vision of a healthy society, where mental and physical healthcare are unified for a better life. Also, better-than-expected second-quarter 2022 performances raise optimism about the stock.

This outpatient mental health services provider is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of +29.4%. Revenues are expected to be $211.84 million, up 32% 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 LifeStance Health, 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 LFST 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 >>>>

LifeStance Health is a member of the Zacks Medical - Outpatient and Home Healthcare industry. One other stock in the same industry, Aveanna Healthcare AVAH, finished the last trading session 3.8% higher at $2.49. AVAH has returned -20.8% over the past month.

For Aveanna , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of -20% from what the company reported a year ago. Aveanna currently has a Zacks Rank of #4 (Sell).

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