Progyny, Inc. (PGNY) Hits Fresh High: Is There Still Room to Run?

Company Performance - Progyny (PGNY) has seen a stock increase of 2.4% over the past month, reaching a new 52-week high of $27.76, and has gained 56.3% since the start of the year, outperforming the Zacks Medical sector's 7.6% and the Zacks Medical Services industry's 6.9% [1] - The company has a strong record of positive earnings surprises, having beaten earnings consensus estimates in the last four quarters, with the latest EPS reported at $0.45 against a consensus estimate of $0.39, and revenue exceeding estimates by 4.19% [2] Financial Projections - For the current fiscal year, Progyny is expected to post earnings of $1.8 per share on revenues of $1.27 billion, reflecting a 9.76% change in EPS and a 9.16% change in revenues [3] - The next fiscal year projections indicate earnings of $1.93 per share on revenues of $1.39 billion, representing year-over-year changes of 7.22% and 9.24%, respectively [3] Valuation Metrics - Progyny currently trades at 15X current fiscal year EPS estimates, slightly below the peer industry average of 15.6X, while on a trailing cash flow basis, it trades at 78.1X compared to the peer group's average of 11X [7] - The stock has a PEG ratio of 0.9, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Progyny holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [8] - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of B [6] Industry Comparison - In comparison to industry peers, CareDx, Inc. (CDNA) also shows strong performance with a Zacks Rank of 2 (Buy) and a Growth Score of A, although its Value Score is C [9] - CareDx, Inc. reported earnings that beat consensus estimates by 115.38%, with expected earnings of $0.77 per share on revenue of $374.08 million for the current fiscal year [10]