EarningsBeats.com Digest for April 5, 2021
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A Health Care Stock Poised For Another Pre-Earnings Surge?
NextGen Healthcare, Inc. (NXGN) has beaten its EPS consensus estimate in each of its last 6 quarters. In its last 3 quarters, it's had pre-earnings advances of 35%, 21%, and 29%. These advances have averaged approximately 4 weeks. NXGN has pulled back during the past few weeks to test the low established in February. I would expect a rebound from this level and NXGN's recent history suggests it could begin at any time:
The 7 green arrows highlight 7 successful tests of price support at 18. Clearly, we know where to draw our line in the sand to the downside. In order to see further strength, NXGN will need to clear its declining 20-day EMA (red arrow). I expect that to happen this week. I know relative strength has been weak for the past couple months, but it's been during NXGN's consolidation period. At the time NXGN made its high in January, it
was a leader in software ($DJUSSW). Don't be surprised if buyers emerge as NXGN begins its next earnings-related advance. Earnings are due out in 4 weeks, on May 3rd.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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