In the past 30 days, five analysts have increased their EPS estimates for this benefits management company.
Progyny, Inc. (PGNY)
From Cabot Growth Investor
Progyny has a story we’ve really liked since we first dug into it back in January, and it’s not a traditional tech/biotech/chip outfit that’s been struggling.
The firm is basically an HMO of sorts, with plans that work for couples trying to conceive a growing issue for both want-to-be parents (who are starting families later in life, which increases the odds of problems) and companies (who want a more productive workforce and not stressed-out employees missing time with unsuccessful techniques).
The solutions are popular (100% client retention!), and while it’s possible some big boy comes in and tries to compete, Progyny has such a big lead (nearly 200 clients) and has 800-plus fertility experts and 600 clinic locations (30% of which don’t even participate in carrier networks).
The stock was tossed around for a few months, but etched higher lows during the correction, and as the pressure came off during the past two weeks PGNY has zoomed straight up to new highs.
Importantly, shares can be a little thinly traded (we don’t advise placing overnight orders FYI), but we’re OK taking a half position (5% of the portfolio) and averaging up if all goes well. We’ll likely use a stop near 50 or so, give or take. BUY A HALF.
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, June 3, 2021