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Leading provider of institutional pharmacy, specialty infusion and hospital pharmacy management services, PharMerica Corporation announced that it has amended its existing credit agreement. Per the revised agreement, the company increased its borrowing capacity by approximately $150 million.
Meanwhile, the stock over the last six months represents a return of almost 1.5%, comparing favorably with the Zacks categorized Medical - Outpatient and Home Healthcare sub-industry’s negative return of almost 4.8%. Additionally, a long-term expected earnings growth rate of 10.5% and an earnings yield of 7.4%, compared to the industry’s 4.5%, instill confidence among investors. The estimate revision trend for the stock has been dismal with four estimates moving south in the last two months, and none moving in the opposite direction. Notably, the current year estimate for the stock decreased 14 cents to $1.86 per share over the same time frame.
Under the terms of the amended credit agreement, the revolving facility increased by $60 million and the term loan facility increased by approximately $90 million. The amended credit agreement also increased the accordion feature, which now provides PharMerica with an incremental basket of up to $200 million of credit. However indebtedness under the credit agreement is still expected to mature on Sep 17, 2019. We feel the expansion of borrowing capacity will give PharMerica the financial flexibility to drive further business diversification and value-enhancing growth.
The company serves the long-term care, hospital pharmacy management services, specialty home infusion and oncology pharmacy markets. PharMerica operates 95 institutional pharmacies, 17 specialty home infusion pharmacies and four specialty oncology pharmacies in 45 states.
Zacks Rank & Key Picks
Currently, PharMerica has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 47.9%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 2.4% in the last one month.
HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 48%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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PharMerica Amends Credit Facility, Ups Borrowing Capacity
Leading provider of institutional pharmacy, specialty infusion and hospital pharmacy management services, PharMerica Corporation announced that it has amended its existing credit agreement. Per the revised agreement, the company increased its borrowing capacity by approximately $150 million.
Meanwhile, the stock over the last six months represents a return of almost 1.5%, comparing favorably with the Zacks categorized Medical - Outpatient and Home Healthcare sub-industry’s negative return of almost 4.8%. Additionally, a long-term expected earnings growth rate of 10.5% and an earnings yield of 7.4%, compared to the industry’s 4.5%, instill confidence among investors.
The estimate revision trend for the stock has been dismal with four estimates moving south in the last two months, and none moving in the opposite direction. Notably, the current year estimate for the stock decreased 14 cents to $1.86 per share over the same time frame.
Under the terms of the amended credit agreement, the revolving facility increased by $60 million and the term loan facility increased by approximately $90 million. The amended credit agreement also increased the accordion feature, which now provides PharMerica with an incremental basket of up to $200 million of credit. However indebtedness under the credit agreement is still expected to mature on Sep 17, 2019. We feel the expansion of borrowing capacity will give PharMerica the financial flexibility to drive further business diversification and value-enhancing growth.
The company serves the long-term care, hospital pharmacy management services, specialty home infusion and oncology pharmacy markets. PharMerica operates 95 institutional pharmacies, 17 specialty home infusion pharmacies and four specialty oncology pharmacies in 45 states.
Zacks Rank & Key Picks
Currently, PharMerica has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 47.9%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 2.4% in the last one month.
HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 48%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>