Shares of Livongo Health (NASDAQ:LVGO) rose sharply on Wednesday and are up by 9.9% as of 11:35 a.m. EDT today, despite the company not reporting any news that served as a catalyst for its stock price jumping. However, we can probably attribute Livongo Health's gains to the overall rise in stocks.
Livongo Health has been defying gravity over the past few months. The company's stock is up by more than 380% since the beginning of the year. However, growth stocks like Livongo Health are likely to go higher (or drop lower) when the overall market does so. All three major U.S. market indexes climbed at the opening of today's trading session. Livongo Health could be benefiting from this rise. It is also worth noting that the company is set to release its second-quarter earnings report next week.
Livongo Health released preliminary Q2 results earlier this month, and the company expects its revenue to come in between $86 million and $87 million, ahead of its previously announced guidance of $73 million and $75 million. A pretty good day (so far) for the overall market coupled with enthusiasm regarding the company's upcoming quarterly update may be what's driving Livongo Health's stock higher today.
Livongo Health's approach to helping patients manage their chronic health conditions (such as diabetes and hypertension) has been highly successful thus far, and the COVID-19 pandemic has arguably helped to increase the demand for its services. Furthermore, the healthcare company is only beginning to tap into the potential market opportunity that's presented itself. Given these factors, Livongo Health could continue to beat the market long after the current crisis subsides.