Phreesia (PHR) Stock Jumps 5.1%: Will It Continue to Soar?

Phreesia PHR shares soared 5.1% in the last trading session to close at $11.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.4% loss over the past four weeks.

Phreesia scored a strong price increase, driven by investor’s optimism following a recent SEC filling of Pale Fire Capital SE, a major investor, which showed that it has purchased 1,602,505 shares of the company between Mar. 17 and 19, for roughly $18,304,680. Their total holding for this class of stock is now 7,648,829 shares.

This developer of health care software is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +181.8%. Revenues are expected to be $126.37 million, up 15.2% 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 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Phreesia belongs to the Zacks Medical Info Systems industry. Another stock from the same industry, KORU Medical Systems, Inc. KRMD, closed the last trading session 1.2% lower at $4.3. Over the past month, KRMD has returned -7.5%.

For KORU Medical Systems, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. This represents a change of +66.7% from what the company reported a year ago. KORU Medical Systems, Inc. currently has a Zacks Rank of #3 (Hold).

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