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eHealth (EHTH) Soars 13.7%: Is Further Upside Left in the Stock?

eHealth (EHTH) shares ended the last trading session 13.7% higher at $7.64. 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 11.6% loss over the past four weeks.

eHealth is expected to benefit from strong momentum in Medicare Advantage enrollment growth. The company has made significant progress toward enhancing tele sales organization. Higher commission revenues as well as a carrier dedicated business model are likely to boost the revenues. eHealth expects total revenues for 2023 in the range of $439-$459 million, up from the year-ago level of $405.4 million. Higher revenues from Individual, Family and Small Business, and Medicare businesses are likely to boost the top line in 2023. The rising top line, along with lower costs, is expected to reduce losses in 2023.

This provider of internet-based heath insurance agency services is expected to post quarterly loss of $0.70 per share in its upcoming report, which represents a year-over-year change of +40.2%. Revenues are expected to be $58.48 million, up 9.6% 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 eHealth, 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 EHTH 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 >>>>

eHealth is part of the Zacks Insurance - Brokerage industry. Willis Towers Watson (WTW), another stock in the same industry, closed the last trading session 0.7% higher at $214.78. WTW has returned 6.4% in the past month.

Willis Towers Watson's consensus EPS estimate for the upcoming report has changed -3.4% over the past month to $2.08. Compared to the company's year-ago EPS, this represents a change of -5.5%. Willis Towers Watson currently boasts a Zacks Rank of #4 (Sell).

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