Arlington, VA based Evolent Health, Inc. (NYSE:EVH) recently announced the pricing of its follow-on public offering of 4.5 million shares of Class A common stock at $25.90 per share. The company provides integrated value-based care platform to health systems and physician organizations.
Stock Performance
The price performance of the stock has been favorable in the last three months. Evolent Health delivered a return of 30.15%, outperforming the Zacks classified Internet Software sub-industry’s gain of almost 9.92%.
However, the estimate revision trend for the current year has been unfavorable as five estimates moved south in the last two months compared with no movement in the opposite direction. Thus, investors are waiting for a reversal in estimates before adding the stock to their portfolio. This justifies the stock’s Zacks Rank #3 (Hold).
We are optimistic about the long-term growth of the company which is pegged at 30.0%. It has projected sales growth of 64.2%, which is higher than the industry’s average of 13.3%.
More About the Offer
Coming back to the news, the follow-on offering is expected to close on Jun 28, 2017. As of Mar 31, 2017, total cash, cash equivalents and investments were pegged at $138.0 million compared with $178.9 million as of Dec 31, 2016.
Based in Pittsburgh, PA, Evolent Health provides integrated value-based care platform to leading health systems and physician organizations. The company provides a combination of software and services to help in the operations of large health systems. It manages the increasing amount of risk associated with insurance contracts that pay providers to keep patients health. The company also helps health systems with insurance plans.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (NASDAQ:INGN) , Luminex Corporation (NASDAQ:LMNX) and IDEXX Laboratories, Inc. (NASDAQ:IDXX) . Notably, Inogen and Luminex Laboratories sport a Zacks Rank #1 (Strong Buy), while IDEXX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 102.3%.
Luminex has a long-term expected earnings growth rate of 16.3%. The stock delivered a positive earnings surprise of 237.5% in the last reported quarter.
IDEXX Laboratories has a long-term expected earnings growth rate of 19.37%. Additionally, the stock represents an impressive one-year return of 81.8%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Evolent Health, Inc (EVH): Free Stock Analysis Report
Luminex Corporation (LMNX): Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
Inogen, Inc (INGN): Free Stock Analysis Report
Original post