IBD Stock Analysis
- Progyny stock is closing in on a 51.98 buy point.
- Shares rebounded from a test of the 10-week line last month.
- The relative strength line remains near all-time highs.
Industry Group Ranking
Three Weeks Tight
* Not real-time data. All data shown was captured at
4:26PM EST on
Progyny acts as a third-party insurance option specifically focused on pregnancy and family planning. The company gives customers access to a wide variety of fertility specialists and covers services like egg freezing, surrogacy, in vitro fertilization and adoption.
A recent Brookings Institution report found that 500,000 fewer babies could be born in the U.S. during 2021 as the Covid-19 pandemic closes hit employment rates and keep schools closed. But Progyny remains confident in demand.
“Looking at our broader market opportunities, we continue to believe that all the macro forces that have been driving our success remain intact. … Our utilization shows that fertility patients and Progyny members in particular, remain focused on realizing the dreams of parenthood,” COO Pete Anevski said during the Q3 earnings call.
Shares erased earlier losses to close up less than 0.1% at 51.28 on the stock market today. But PGNY stock rebounded from its 10-week line a few weeks ago, and is trading very tightly. It is now forming a three-weeks-tight entry with a 51.98 buy point.
The relative strength line, which tracks performance vs. the S&P 500 index, is at a new high. PGNY stock has a 55 Composite Rating and an EPS Rating of 38. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
The stock is a recent IPO and went public in October 2019 and is headed toward becoming profitable.
Progyny Earnings To Jump
Even as PGNY stock sets up a potential buying opportunity, investors should wait until after earnings to buy the stock unless buying through an option. A negative earnings report could swing the stock under the buy range and lead to a loss for investors. But using option trades can minimize risks.
The company reports after the market closes Wednesday, and analysts see EPS shooting up to 6 cents from a penny in the year-ago quarter, as revenue jumps 50% to $97.73 million.
The coronavirus pandemic upended health care as clinics were closed and hospitals focused resources on fighting the deadly virus. But many fertility clients have reopened with health and safety precautions in place.
Clients include tech giants Facebook (FB), Alphabet‘s (GOOGL) Google, and Microsoft (MSFT). And that list is growing. In its Q3 report, Progyny said it expects to start 2021 with 180 total clients and 2.7 million members, up 36% and 29%, respectively, since Q1 2020.
The company is also seeing increased interest from same-sex couples, couples waiting to have children later in life and from single mothers.
Follow Gillian Rich on Twitter for investing news and more.
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