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Here's Why You Should Add Amedisys (AMED) to Your Portfolio
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Amedisys, Inc. (AMED - Free Report) has been gaining investor confidence on consistently positive results. Over the past six months, the company’s share price has outperformed its industry. The stock has gained 74.4% against the 13.1% fall of the industry. Also, the company has outperformed the S&P 500’s 1.6% decline.
This renowned home health and hospice services provider has a market cap of $3.95 billion. The company’s five-year projected growth rate is favorable at 18.8% compared with the industry’s 12.4%.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.
Per our Style Score, Amedisys has a Growth Score of A, which is reflective of the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Let’s find out whether the positive trend is a sustainable one.
What Makes the Stock an Attractive Pick?
Solid Quarterly Performance
Amedisys ended the third quarter on a promising note with earnings and revenues exceeding the Zacks Consensus Estimate. At the Home Health and Hospice divisions, the company witnessed encouraging growth in Medicare and non-Medicare revenues. Also, rising margins buoy optimism.
Improving Clinical Quality
Amedisys is currently focusing on improving clinical quality. In this regard, we take a note that Amedisys’ January 2019 STARs score preview by CMS puts it at an average of 4.4 stars. The company now has 69 care centers rated at 5 stars, with 94% of overall portfolio rated at 4 stars or better.
Personal Care Prospects Bright
Amedisys has been witnessing impressive performance within its Personal Care business. Per management, this segment is stabilizing and performing per expectations. Moreover, the company is working on expanding the geographical presence of the Personal Care business through inorganic expansion.
Amedisys is currently integrating recent tuck-in acquisitions like Bring Care Home, East Tennessee Personal Care Services and Intercity. According to the company, these buyouts will enlarge its personal care footprint outside of Massachusetts and Florida.
Which Way Are Estimates Trending?
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 85 cents, reflecting year-over-year growth of 51.8%. The same for revenues stands at $426.5 million, mirroring a year-over-year improvement of 5.5%.
For 2018, the Zacks Consensus Estimate for earnings is pinned at $3.58, reflecting 62% year-over-year growth. The same for revenues is pegged at $1.66 billion, indicating a rise of 8%.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corp. (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Integer Holdings has an expected earnings growth rate of 30.3% for the current year and a Zacks Rank #2.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2 currently.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why You Should Add Amedisys (AMED) to Your Portfolio
Amedisys, Inc. (AMED - Free Report) has been gaining investor confidence on consistently positive results. Over the past six months, the company’s share price has outperformed its industry. The stock has gained 74.4% against the 13.1% fall of the industry. Also, the company has outperformed the S&P 500’s 1.6% decline.
This renowned home health and hospice services provider has a market cap of $3.95 billion. The company’s five-year projected growth rate is favorable at 18.8% compared with the industry’s 12.4%.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.
Per our Style Score, Amedisys has a Growth Score of A, which is reflective of the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Let’s find out whether the positive trend is a sustainable one.
What Makes the Stock an Attractive Pick?
Solid Quarterly Performance
Amedisys ended the third quarter on a promising note with earnings and revenues exceeding the Zacks Consensus Estimate. At the Home Health and Hospice divisions, the company witnessed encouraging growth in Medicare and non-Medicare revenues. Also, rising margins buoy optimism.
Improving Clinical Quality
Amedisys is currently focusing on improving clinical quality. In this regard, we take a note that Amedisys’ January 2019 STARs score preview by CMS puts it at an average of 4.4 stars. The company now has 69 care centers rated at 5 stars, with 94% of overall portfolio rated at 4 stars or better.
Personal Care Prospects Bright
Amedisys has been witnessing impressive performance within its Personal Care business. Per management, this segment is stabilizing and performing per expectations. Moreover, the company is working on expanding the geographical presence of the Personal Care business through inorganic expansion.
Amedisys is currently integrating recent tuck-in acquisitions like Bring Care Home, East Tennessee Personal Care Services and Intercity. According to the company, these buyouts will enlarge its personal care footprint outside of Massachusetts and Florida.
Which Way Are Estimates Trending?
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 85 cents, reflecting year-over-year growth of 51.8%. The same for revenues stands at $426.5 million, mirroring a year-over-year improvement of 5.5%.
For 2018, the Zacks Consensus Estimate for earnings is pinned at $3.58, reflecting 62% year-over-year growth. The same for revenues is pegged at $1.66 billion, indicating a rise of 8%.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corp. (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer Holdings has an expected earnings growth rate of 30.3% for the current year and a Zacks Rank #2.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2 currently.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>