Cross Country Healthcare (CCRN) Plunges More Than Broader Markets: What You Need to Know
VSRoss Country Healthcare (CCRN) closed the last day of trading at $17.92, -0.22% from the previous trading session. That move lagged the S&P 500’s daily 0.15% loss. Meanwhile, the Dow lost 0.38% and the Nasdaq, a technology-heavy index, lost 0.05%.
Prior to today’s trading, shares of the healthcare staffing and workforce management services provider had lost 36.4% in the past month. This was lower than the business services sector’s loss of 25.71% and the S&P 500’s loss of 7.66% during this period.
Investors are hoping for strength from Cross Country Healthcare as it approaches its next earnings release. On that day, Cross Country Healthcare is expected to post earnings of $1.35 per share, representing year-over-year growth of 610.53%. Our most recent consensus estimate calls for quarterly revenue of $602.67 million, up 179.52% from the prior year period.
Investors may also notice recent changes in analyst estimates for Cross Country Healthcare. These revisions help show the ever-changing nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 The Zacks Consensus EPS estimate rose 1.6% over the past month. Cross Country Healthcare currently has a Zacks ranking of #1 (Strong Buy).
Digging into the valuation, Cross Country Healthcare currently has a forward P/E ratio of 11.31. For comparison, its industry has an average PER of 11.94, which means Cross Country Healthcare is trading at a discount to the group.
We can also see that CCRN currently has a PEG ratio of 0.53. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. Staffing firms held an average PEG ratio of 0.97 at yesterday’s closing price.
The recruitment agency industry is part of the business services sector. This industry currently has a Zacks Industry Ranking of 18, which places it in the top 8% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.