IBD 50 Stocks To Watch: Fertility Stock Progyny Delivers This Bullish Move, Eyes Buy Point

Fertility leader Progyny (PGNY) is the IBD 50 Stocks To Watch pick for Tuesday. Progyny stock delivered a bullish move as it eyes a new buy point.

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Progyny is a fertility benefits manager. When an employer chooses to use Progyny, the fertility treatment provided through any other health carrier used by that employer is switched off.

Progyny’s services try to work around the cost limits patients typically face when undergoing treatment, and cover the full range of treatment and services.

Progyny Stock Analysis

Progyny stock has just climbed above its 50-day moving average. Retaking this key technical benchmark is a bullish indicator as the stock works on a new base.

Progyny stock looks to be finding momentum as it eyes a consolidation pattern buy point of 53.58, according to MarketSmith analysis. But a closer analysis shows the stock is forming a cup-with-handle base. By measuring the midpoints of the base and the handle, the handle is slightly higher than the base. So, the buy point to watch is 50.35.

The relative strength line for Progyny stock is looking positive again following a recent dip. This gauge’s a stock’s performance compared with the broader S&P 500. PGNY stock is up around 13% so far in 2021, which is better than the S&P 500. It has also ran as high as 243% above its 2020 lows.

Progyny stock holds a less-than-ideal IBD Composite Rating of 81. Earnings are slightly lagging stock market performance.

The firm has seen its earnings accelerate for the past two quarters. EPS growth reached 125% in the most recent quarter.

The company, which went public in 2019, posted a profitable year for the very first time in 2020. Analysts see annual EPS improving by 141% in 2021, and then popping 59% in 2022. It has been getting upward revisions from analysts.

Fertility Stock Looks To ‘Eggspand’

During the firm’s last earnings call, management said they had seen no “skinnying down” of benefits by employers in an effort to control costs. In fact, they said when changes were made, they were to make their fertility offerings “more robust.”

Chief Operating Officer Peter Anevski also said the firm is eying M&A opportunities ahead as Progyny looks to emerge from the Covid era.

“2020 was definitely a year of managing through the pandemic,” he said. “2021 — in addition to sort of taking advantage of the opportunities that we have, with what we have in the space that we’re in now — is a year of real focus around those adjacencies and opportunities, including looking at some of the events that (are) out there, looking at any strategic acquisitions we could do.”

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