Many stocks have been testing new highs in 2020, and one of the most notable is eHealth Inc. (EHTH). Currently, EHTH is trading at $110.10 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $177.27.
To add more color to this target, the company’s high over the last year is $152.19 and the low is $52.71. Over the last 52 weeks, EHTH is down -27.65% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, EHTH reported a profit of $1.4 million. eHealth Inc. also saw revenues increase to $106.41 million. In addition, EHTH has free cash flow of $2.83 million as of 03-2020 The company’s EBITDA came in at $3.9 million which compares well with its peers.
EHTH booked profit margins of 13.90%, its Return on Equity (ROE) is 13.80%, and its Return on Assets is 10.60%. All told, it is clear that, EHTH needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EHTH has a short ratio of 2.99 and outstanding shares of 24.72M.
EHTH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.72 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.41. Investors should also keep an eye on sector updates as EHTH has historically followed its peers on positive news.
All told, eHealth Inc. EHTH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EHTH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
eHealth Inc. EHTH is now commanding a market cap of 2.76B and a float of 24.81M. EHTH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EHTH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in EHTH, either long or short, and we have not been compensated for this article.