LifeStance Health (LFST), a U.S. outpatient mental health provider, is nearing a new technical buy point as the broader stock market remains weak. Investors are watching for its third-quarter results, due Thursday, to see whether revenue and earnings continued to grow. The stock was featured on Monday's IBD 50 watchlist, but approaching a buy point does not guarantee further gains, particularly in a choppy market where shares can fall below key levels.
Thursday's report puts growth in focus
LifeStance is expected to report higher earnings and revenue for the third quarter, though no specific consensus figures were provided. The results will offer a fresh measure of the company's operating performance. The proximity to a technical entry level has drawn added attention to the report, but broader market weakness remains part of the backdrop for the stock.
The second quarter provides a recent benchmark. On Aug. 6, LifeStance reported earnings of 6 cents per share, compared with a loss of 1 cent per share a year earlier. Revenue rose 26% year over year. Thursday's report will show whether that growth continued; the Q2 results alone do not establish that it will.
In-person and telehealth behavioral care
LifeStance is a large outpatient mental health services company offering behavioral health care to children, adolescents and adults through in-person appointments and telehealth. Its results reflect both demand for care and the company's own operating performance. The quarterly figures due this week will give investors an updated view of revenue and earnings trends.
IBD rating and industry ranking
At the time of publication, LifeStance had an IBD Composite Rating of 97 out of 99 and ranked second in the medical-hospitals industry group. The rating is an IBD stock-screening measure, not a forecast of the company's results. Tenet Healthcare (THC) ranked first in the group; its shares were also nearing a cup-with-handle entry point at $278.39.
LifeStance's proximity to a new buy point and high Composite Rating are being weighed against weakness in the broader market. Thursday's revenue and earnings figures will provide the next direct update on the company's recent performance. Until then, the 6-cent-per-share profit and 26% revenue growth reported for the second quarter remain the latest operating benchmarks.