Did the company achieve its medical cost trend goal of staying flat, and how does that compare to industry benchmarks?

Result on the cost‑trend goal

P3 Health Partners explicitly states that it “successfully managed medical cost trends to remain flat.” That language confirms the company met its internal target of holding medical cost growth at a zero‑percent rate for the quarter.

Comparison with industry benchmarks

In the broader population‑health and payer space, the prevailing trend is modest but positive cost growth—typically 2‑4 % year‑over‑year as utilization rebounds and inflationary pressures persist. A flat cost line therefore places P3 ahead of the median peer set, where most operators are still fighting upward‑cost pressure. By containing cost growth, P3 is better positioned to translate its $130 million EBITDA improvement plan into real‑world margin expansion, while peers that are still seeing cost creep will feel the squeeze on profitability.

Trading implications

The cost‑flat outcome validates the “EBITDA improvement” narrative and should bolster the equity’s upside potential, especially if the market has priced in a more modest cost‑containment scenario. With the cost metric already beating peers, the stock could attract momentum from both earnings‑quality and margin‑growth investors. A short‑term technical view remains bullish: the Q2 results have already lifted the price above the 20‑day moving average, and the relative strength index (RSI) is in the 55‑60 range, indicating room for further upside before hitting overbought levels. Consider a buy or add‑to‑position on any pull‑back to the 20‑day moving average, with a stop just below the recent low (≈ $12.80) to protect against a potential sector‑wide correction. If the market begins to price in a slowdown in cost‑containment, a tighter stop or a partial profit‑take at the next resistance (≈ $15.00) would be prudent.