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Amedisys (AMED) Grows on Robust Home Health, Personal Care
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On Aug 14, we issued an updated research report on Amedisys, Inc. (AMED - Free Report) . The stock sports a Zacks Rank #1 (Strong Buy).
This renowned home health and hospice services provider has outperformed the broader industry over the past three months. The stock has soared 58.4%, ahead of the 12.9% increase of the industry.
Notably, Amedisys ended the second quarter on a promising note with both earnings and revenues exceeding the respective Zacks Consensus Estimate. At the Home Health and Hospice divisions, the company witnessed encouraging growth in Medicare and non-Medicare revenues. It is currently exploring opportunities in these segments.
We are also impressed by the company’s solid performance in Personal Care division. A favorable demographic trend and strategic acquisitions also bode well for growth. We are currently looking forward to Amedisys’ recent buyouts like Bring Care Home and ETPCS to expand its foothold in personal care.
Additionally, the company is currently focusing on improving its clinical quality. In this regard, it is important to note that Amedisys’ October 2018 STARs score preview by CMS puts it at an average of 4.41 stars, up from 4.38 in the July preview. The company now boasts 73 care centers with 5 star rates and 94% of overall portfolio being merited with 4 stars or better. This achievement now marks the 13th straight quarter of sequential improvement in terms of star value.
Moreover, a favorable 2018 Home Health Final Rule buoys optimism. Per a report by HEALTHCAREfirst, the rule was finalized without implementing the Home Health Groupings Model scheduled for rollout in 2019.
Meanwhile, Amedisys is poised to benefit from the aging demographics of the U.S. population and the need for higher acuity patients in a home nursing environment. Also, the company’s strong cash balance bolsters investors’ confidence in the stock.
On the flip side, escalating operating expenses and a declining gross margin continue to raise concerns. Further, an intensely competitive landscape and regulatory woes weigh on the home health and hospice industry.
Other Key Picks
A few other top-ranked stocks in the MedTech space are Inogen Inc (INGN - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and The Cooper Companies (COO - Free Report) . While Inogen has a Zacks Rank #2 (Buy), Integer and The Cooper Companies flaunt a Zacks Rank of 1.
Inogen has an expected long-term earnings growth rate of 22.5% while the same for Integer Holdings and The Cooper Companies is at 15% and 10.8%, respectively.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Amedisys (AMED) Grows on Robust Home Health, Personal Care
On Aug 14, we issued an updated research report on Amedisys, Inc. (AMED - Free Report) . The stock sports a Zacks Rank #1 (Strong Buy).
This renowned home health and hospice services provider has outperformed the broader industry over the past three months. The stock has soared 58.4%, ahead of the 12.9% increase of the industry.
Notably, Amedisys ended the second quarter on a promising note with both earnings and revenues exceeding the respective Zacks Consensus Estimate. At the Home Health and Hospice divisions, the company witnessed encouraging growth in Medicare and non-Medicare revenues. It is currently exploring opportunities in these segments.
Amedisys, Inc. Price
Amedisys, Inc. Price | Amedisys, Inc. Quote
We are also impressed by the company’s solid performance in Personal Care division. A favorable demographic trend and strategic acquisitions also bode well for growth. We are currently looking forward to Amedisys’ recent buyouts like Bring Care Home and ETPCS to expand its foothold in personal care.
Additionally, the company is currently focusing on improving its clinical quality. In this regard, it is important to note that Amedisys’ October 2018 STARs score preview by CMS puts it at an average of 4.41 stars, up from 4.38 in the July preview. The company now boasts 73 care centers with 5 star rates and 94% of overall portfolio being merited with 4 stars or better. This achievement now marks the 13th straight quarter of sequential improvement in terms of star value.
Moreover, a favorable 2018 Home Health Final Rule buoys optimism. Per a report by HEALTHCAREfirst, the rule was finalized without implementing the Home Health Groupings Model scheduled for rollout in 2019.
Meanwhile, Amedisys is poised to benefit from the aging demographics of the U.S. population and the need for higher acuity patients in a home nursing environment. Also, the company’s strong cash balance bolsters investors’ confidence in the stock.
On the flip side, escalating operating expenses and a declining gross margin continue to raise concerns. Further, an intensely competitive landscape and regulatory woes weigh on the home health and hospice industry.
Other Key Picks
A few other top-ranked stocks in the MedTech space are Inogen Inc (INGN - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and The Cooper Companies (COO - Free Report) . While Inogen has a Zacks Rank #2 (Buy), Integer and The Cooper Companies flaunt a Zacks Rank of 1.
Inogen has an expected long-term earnings growth rate of 22.5% while the same for Integer Holdings and The Cooper Companies is at 15% and 10.8%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>