Earnings Estimates Moving Higher for Life Time Group Holdings: Time to Buy?

Life Time Group Holdings, Inc. LTH appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Life Time Group Holdings, as there has been strong agreement among the covering analysts in raising estimates.

Current-Quarter Estimate Revisions

The company is expected to earn $0.18 per share for the current quarter, which represents a year-over-year change of +38.46%.

The Zacks Consensus Estimate for Life Time Group Holdings has increased 8.11% over the last 30 days, as three estimates have gone higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $0.74 per share for the full year, which represents a change of +100% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Life Time Group Holdings. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 22.46%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Life Time Group Holdings currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Life Time Group Holdings shares have added 25% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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