American Well CorporationAMWL shares ended the last trading session 6.1% higher at $14.98. 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 4% gain over the past four weeks.
American Well scored a strong price increase on investors' optimism surrounding the company's impending third quarter 2026 financial results, which is expected to release on Nov. 3, after the closing bell. The Zacks Consensus Estimate for the third quarter revenue suggests a decline of 16.4% and the loss per share is expected to improve 62.1%.
This company is expected to post quarterly loss of $0.66 per share in its upcoming report, which represents a year-over-year change of +62.1%. Revenues are expected to be $47.06 million, down 16.4% 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 American Well, 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 AMWL 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 >>>>
American Well is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Evolent HealthEVH, finished the last trading session 1.9% lower at $4.25. EVH has returned 24.1% over the past month.
Evolent Health's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of +20%. Evolent Health currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Well Corporation (AMWL) : Free Stock Analysis Report
Evolent Health, Inc (EVH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
