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4 Outpatient & Home Healthcare Stocks in Focus Amid Industry Tailwinds
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The Zacks Medical – Outpatient and Home Healthcare industry is undergoing a rapid transition toward digital modes of care delivery. Demand for telemedicine platforms and artificial intelligence (AI)-powered medical solutions has increased significantly in recent years. At the same time, the growing global aging population is encouraging many healthcare providers, which have traditionally been less technology-focused, to adopt tech-enabled offerings to remain competitive. Per Grand View Research, the global home healthcare market was estimated at $485.3 billion in 2025 and is anticipated to grow from $504.8 billion in 2026 to $1015.8 billion by 2033, at a CAGR of 10.5%. Rising healthcare costs are another key factor prompting MedTech companies to accelerate their shift toward digital healthcare.
Rising dependence on telehealth and AI is likely to help the industry thrive in the near term. DaVita Inc. (DVA - Free Report) , LifeStance Health Group, Inc. (LFST - Free Report) , Option Care Health, Inc. (OPCH - Free Report) and Aveanna Healthcare Holdings Inc. (AVAH - Free Report) are likely to gain from the prospects.
Industry Description
The industry includes companies delivering ambulatory care in outpatient settings or at home, using advanced technologies for diagnosis, treatment and rehabilitation. Key players operate HMO medical centers, dialysis units and other outpatient facilities. Both payers and providers are witnessing steady growth, supported by ongoing service innovation and increasing demand for care outside traditional hospital settings. The continued shift toward value-based care models and the growing integration of technology across healthcare are creating opportunities for further expansion and are expected to support long-term industry growth. However, reimbursement pressures and elevated operating costs remain concerns for the industry's outlook.
Major Trends Shaping Outpatient and Home Healthcare Industry
Aging Population: One of the primary drivers of the home healthcare market is the aging population. As people live longer, demand is growing for services related to chronic disease management, rehabilitation and daily living assistance. The rising elderly population is expected to increase the need for home healthcare services. Older adults also tend to prefer receiving appropriate healthcare services in the familiar and comfortable setting of their homes.
Cost Effectiveness: A key advantage of outpatient clinics is cost-effectiveness. Outpatient facilities generally do not require overnight stays and can offer a broad spectrum of diagnostic services, treatments and minor surgical procedures, often at lower costs than inpatient settings. Financial incentives, including health plans and government payment policies that support appropriate services in lower-cost settings, have also been driving outpatient care.
Home-based care can further generate healthcare savings by helping reduce avoidable emergency room visits, hospitalizations and readmissions. The continued emphasis on delivering appropriate care in lower-cost settings should support demand for outpatient and home-based services.
AI’s Growing Role: AI is playing an increasingly important role in healthcare, including remote patient monitoring and data analysis. Connected medical devices can collect patients' health information and make it available to healthcare providers, while AI-based tools can help identify changes in patient conditions and support timely intervention. AI can also simplify complex home care plans by assisting caregivers, providers and patients with care coordination and scheduling. Home healthcare providers are also using automation for administrative functions such as documentation, billing and workforce management, helping improve operational efficiency amid workforce constraints.
Technological Advancements: Virtual assistants and chatbots can help patients obtain information about their care and make more informed decisions. Integration with electronic health records can also help patients access health information, communicate with providers and manage appointments. Digital tools can further support adherence through medication, exercise and other care-plan reminders.
Home healthcare can benefit from Medicare and other payer coverage of eligible services delivered in patients' homes. Telehealth, remote monitoring and connected technologies are becoming increasingly integrated into healthcare delivery. CMS also introduced new remote therapeutic monitoring codes for 2026. Meanwhile, hospital-at-home continues to gain traction, with federal waivers and flexibilities for CMS' Acute Hospital Care at Home initiative extended through Sept. 30, 2030.
Staffing Shortages: Staffing shortages remain a structural challenge in U.S. healthcare, particularly in home-based care. Growing demand for caregivers, coupled with turnover and the need to replace workers leaving the occupation, continues to strain workforce availability. Rising labor costs can also pressure providers, particularly when reimbursement does not keep pace with expenses. Although technology and workflow automation can improve staff productivity and reduce administrative burdens, they cannot fully offset shortages of frontline workers in labor-intensive outpatient and home healthcare settings.
Zacks Industry Rank
The Zacks Medical - Outpatient and Home Healthcare industry falls within the broader Zacks Medical sector. It has a Zacks Industry Rank #52, which places it in the top 21% of nearly 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few outpatient home health stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry's Stock Market Performance
The industry has outperformed its sector, but underperformed the S&P 500 Composite in the past year.
The industry has gained 19% over this period compared with the S&P 500’s rise of 21.6% and the broader sector’s growth of 12.5%.
One Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), commonly used for valuing medical stocks, the industry is currently trading at 19.1X compared with the S&P 500’s 20.5X and the sector’s 21.6X.
Over the last five years, the industry has traded as high as 22.6X and as low as 16.1X, with the median being at 19.3X, as the charts below show.
Price-to-Earnings Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
Price-to-Earnings Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
4 Outpatient and Home Healthcare Stocks to Watch
LifeStance: A renowned provider of outpatient mental healthcare, LifeStance, reported second-quarter 2026 results this month, wherein it recorded a solid uptick in revenues. Its clinician base and visit volumes also improved during the quarter. LFST carries a Zacks Rank #2 (Buy).
For this Scottsdale, AZ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 19.7%. The same for earnings indicates a surge of 700%.
Image Source: Zacks Investment Research
The company’s debt/capital ratio of 14.92% compares favorably with the industry’s 39.53%.
Option Care Health: Option Care Health is a renowned independent provider of home and alternate site infusion services. Last month, the company reported second-quarter 2026 results, wherein it recorded an uptick in its net revenues and bottom line. Per management, the results reflected the company’s solid operational execution and the positive impact of its 2026 strategic initiatives. OPCH presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For this Bannockburn, IL-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 1.9%. The same for earnings indicates an increase of 8.7%.
Image Source: Zacks Investment Research
The company’s earnings yield of 7.8% compares favorably with the industry’s 4.7%.
Aveanna: It is a renowned diversified home care platform focused on providing care to medically complex, high-cost patient populations. This month, the company announced its second-quarter 2026 results, wherein it registered a solid uptick in its revenues. Per management, the results emphasize the strength of the company’s operating model and the continued success of the Preferred Payor and Government Affairs strategies. AVAH presently carries a Zacks Rank of 2.
For this Atlanta, GA-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 10.6%. The same for earnings indicates an increase of 33.3%.
Image Source: Zacks Investment Research
The company’s earnings yield of 5.8% compares favorably with the industry’s 4.7%.
DaVita: This renowned global comprehensive kidney care provider announced a new value-based care agreement with Humana this month. The partnership aims to deliver comprehensive, coordinated care to Humana Medicare Advantage members with chronic kidney disease stages 3B–5. The same month, DVA reported second-quarter 2026 results. The company registered an uptick in its top and bottom lines and revenue per treatment during the quarter. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were also seen. An uptick in normalized non-acquired treatment was also recorded. On the earnings call, management highlighted plans to deploy expanded hemodialysis across its network after securing an adequate supply of newly approved dialyzers. DVA carries a Zacks Rank #3 (Hold).
For this Denver, CO-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 4.7%. The same for earnings indicates an increase of 35.2%.
Image Source: Zacks Investment Research
The company’s earnings yield of 8.2% compares favorably with the industry’s 4.7%.
View the Zacks #1 Rank List
Image: Bigstock
4 Outpatient & Home Healthcare Stocks in Focus Amid Industry Tailwinds
The Zacks Medical – Outpatient and Home Healthcare industry is undergoing a rapid transition toward digital modes of care delivery. Demand for telemedicine platforms and artificial intelligence (AI)-powered medical solutions has increased significantly in recent years. At the same time, the growing global aging population is encouraging many healthcare providers, which have traditionally been less technology-focused, to adopt tech-enabled offerings to remain competitive. Per Grand View Research, the global home healthcare market was estimated at $485.3 billion in 2025 and is anticipated to grow from $504.8 billion in 2026 to $1015.8 billion by 2033, at a CAGR of 10.5%. Rising healthcare costs are another key factor prompting MedTech companies to accelerate their shift toward digital healthcare.
Rising dependence on telehealth and AI is likely to help the industry thrive in the near term. DaVita Inc. (DVA - Free Report) , LifeStance Health Group, Inc. (LFST - Free Report) , Option Care Health, Inc. (OPCH - Free Report) and Aveanna Healthcare Holdings Inc. (AVAH - Free Report) are likely to gain from the prospects.
Industry Description
The industry includes companies delivering ambulatory care in outpatient settings or at home, using advanced technologies for diagnosis, treatment and rehabilitation. Key players operate HMO medical centers, dialysis units and other outpatient facilities. Both payers and providers are witnessing steady growth, supported by ongoing service innovation and increasing demand for care outside traditional hospital settings. The continued shift toward value-based care models and the growing integration of technology across healthcare are creating opportunities for further expansion and are expected to support long-term industry growth. However, reimbursement pressures and elevated operating costs remain concerns for the industry's outlook.
Major Trends Shaping Outpatient and Home Healthcare Industry
Aging Population: One of the primary drivers of the home healthcare market is the aging population. As people live longer, demand is growing for services related to chronic disease management, rehabilitation and daily living assistance. The rising elderly population is expected to increase the need for home healthcare services. Older adults also tend to prefer receiving appropriate healthcare services in the familiar and comfortable setting of their homes.
Cost Effectiveness: A key advantage of outpatient clinics is cost-effectiveness. Outpatient facilities generally do not require overnight stays and can offer a broad spectrum of diagnostic services, treatments and minor surgical procedures, often at lower costs than inpatient settings. Financial incentives, including health plans and government payment policies that support appropriate services in lower-cost settings, have also been driving outpatient care.
Home-based care can further generate healthcare savings by helping reduce avoidable emergency room visits, hospitalizations and readmissions. The continued emphasis on delivering appropriate care in lower-cost settings should support demand for outpatient and home-based services.
AI’s Growing Role: AI is playing an increasingly important role in healthcare, including remote patient monitoring and data analysis. Connected medical devices can collect patients' health information and make it available to healthcare providers, while AI-based tools can help identify changes in patient conditions and support timely intervention. AI can also simplify complex home care plans by assisting caregivers, providers and patients with care coordination and scheduling. Home healthcare providers are also using automation for administrative functions such as documentation, billing and workforce management, helping improve operational efficiency amid workforce constraints.
Technological Advancements: Virtual assistants and chatbots can help patients obtain information about their care and make more informed decisions. Integration with electronic health records can also help patients access health information, communicate with providers and manage appointments. Digital tools can further support adherence through medication, exercise and other care-plan reminders.
Home healthcare can benefit from Medicare and other payer coverage of eligible services delivered in patients' homes. Telehealth, remote monitoring and connected technologies are becoming increasingly integrated into healthcare delivery. CMS also introduced new remote therapeutic monitoring codes for 2026. Meanwhile, hospital-at-home continues to gain traction, with federal waivers and flexibilities for CMS' Acute Hospital Care at Home initiative extended through Sept. 30, 2030.
Staffing Shortages: Staffing shortages remain a structural challenge in U.S. healthcare, particularly in home-based care. Growing demand for caregivers, coupled with turnover and the need to replace workers leaving the occupation, continues to strain workforce availability. Rising labor costs can also pressure providers, particularly when reimbursement does not keep pace with expenses. Although technology and workflow automation can improve staff productivity and reduce administrative burdens, they cannot fully offset shortages of frontline workers in labor-intensive outpatient and home healthcare settings.
Zacks Industry Rank
The Zacks Medical - Outpatient and Home Healthcare industry falls within the broader Zacks Medical sector. It has a Zacks Industry Rank #52, which places it in the top 21% of nearly 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few outpatient home health stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry's Stock Market Performance
The industry has outperformed its sector, but underperformed the S&P 500 Composite in the past year.
The industry has gained 19% over this period compared with the S&P 500’s rise of 21.6% and the broader sector’s growth of 12.5%.
One Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), commonly used for valuing medical stocks, the industry is currently trading at 19.1X compared with the S&P 500’s 20.5X and the sector’s 21.6X.
Over the last five years, the industry has traded as high as 22.6X and as low as 16.1X, with the median being at 19.3X, as the charts below show.
Price-to-Earnings Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
Price-to-Earnings Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
4 Outpatient and Home Healthcare Stocks to Watch
LifeStance: A renowned provider of outpatient mental healthcare, LifeStance, reported second-quarter 2026 results this month, wherein it recorded a solid uptick in revenues. Its clinician base and visit volumes also improved during the quarter. LFST carries a Zacks Rank #2 (Buy).
For this Scottsdale, AZ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 19.7%. The same for earnings indicates a surge of 700%.
Image Source: Zacks Investment Research
The company’s debt/capital ratio of 14.92% compares favorably with the industry’s 39.53%.
Option Care Health: Option Care Health is a renowned independent provider of home and alternate site infusion services. Last month, the company reported second-quarter 2026 results, wherein it recorded an uptick in its net revenues and bottom line. Per management, the results reflected the company’s solid operational execution and the positive impact of its 2026 strategic initiatives. OPCH presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For this Bannockburn, IL-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 1.9%. The same for earnings indicates an increase of 8.7%.
Image Source: Zacks Investment Research
The company’s earnings yield of 7.8% compares favorably with the industry’s 4.7%.
Aveanna: It is a renowned diversified home care platform focused on providing care to medically complex, high-cost patient populations. This month, the company announced its second-quarter 2026 results, wherein it registered a solid uptick in its revenues. Per management, the results emphasize the strength of the company’s operating model and the continued success of the Preferred Payor and Government Affairs strategies. AVAH presently carries a Zacks Rank of 2.
For this Atlanta, GA-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 10.6%. The same for earnings indicates an increase of 33.3%.
Image Source: Zacks Investment Research
The company’s earnings yield of 5.8% compares favorably with the industry’s 4.7%.
DaVita: This renowned global comprehensive kidney care provider announced a new value-based care agreement with Humana this month. The partnership aims to deliver comprehensive, coordinated care to Humana Medicare Advantage members with chronic kidney disease stages 3B–5. The same month, DVA reported second-quarter 2026 results. The company registered an uptick in its top and bottom lines and revenue per treatment during the quarter. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were also seen. An uptick in normalized non-acquired treatment was also recorded. On the earnings call, management highlighted plans to deploy expanded hemodialysis across its network after securing an adequate supply of newly approved dialyzers. DVA carries a Zacks Rank #3 (Hold).
For this Denver, CO-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 4.7%. The same for earnings indicates an increase of 35.2%.
Image Source: Zacks Investment Research
The company’s earnings yield of 8.2% compares favorably with the industry’s 4.7%.