eHealth (EHTH -1.05%) shareholders beat a rising market last month. Their stock jumped 22% in March compared to a 4.2% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The spike didn't erase all of the stock's recent losses, though, and eHealth is still trailing the market's 8% increase so far in 2021.
The online insurance provider's stock has been recovering since the drubbing it took following the preliminary fourth-quarter earnings report management issued in late January. Its official results, about a month later, topped those projections as sales declines landed at 3%. Investors were happy to hear eHealth forecast a quick return to growth in the current quarter, and that optimism likely drove the stock's rally last month.
That optimism will be tested when eHealth announces its fiscal first-quarter results in late April. Most investors who follow the stock are expecting that report to show sales climbed 26% to $110 million.
The stock's trajectory from there will depend on whether CEO Scott Flanders and his team still see the Q4 sales challenges as just a temporary speed bump. That optimism should be reflected in another bullish outlook on membership and commission revenue as part of eHealth's Q1 announcement.