LHC Group, Inc. ( LHCG Quick Quote LHCG - Free Report) recently announced its decision to acquire Tulsa, OK-based Grace Hospice of Oklahoma. The buyout is going to be the latest addition to LHC Group’s already robust hospice footprint of above 110 locations across the United States. Notably, the transaction agreement is anticipated to get completed by Dec 1, 2020, subject to customary closing conditions. The company projects annualized revenues of around $12.1 million from this acquisition, with the provider still continuing to operate under the Grace Hospice name. This transaction is likely to provide a substantial boost to the company’s hospice business line. More on the News
LHC Group — a leading national provider of in-home healthcare and hospice services — is likely to reap benefits of the goodwill earned by Grace Hospice over the years by offering high-quality hospice care to patients and families in Tulsa and throughout the region.
Moreover, this is an excellent opportunity for LHC Group to extend its hospice service line and make its foray into the state of Oklahoma. It is important to mention here that the company intends to eventually build home health services in the Tulsa market, which will be in line with its continued growth strategy of co-locating other in-home healthcare services in communities and markets where necessary, while meeting developed, sensible benchmarks. Notable Developments
On Oct 1, 2020, the company finalized a joint venture (JV) with University Health Care System to bolster home health and hospice services in Georgia and South Carolina. The company expects this JV to account for almost $8.3 million in incremental annualized revenues. In the same month, the company finalized a JV with Northeast Georgia Health System in order to share ownership of SunCrest Home Health in Gainesville, GA.
On Nov 1, 2020, LHC Group finalized an expansion of JV with CHRISTUS Health via an agreement of adding a hospice provider in San Marcos, TX. The company anticipates this JV to generate almost $2.1 million in incremental annualized revenues. Price Performance
Shares of the Zacks Rank #3 (Hold) company have surged 61.9% in a year’s time, compared with the
industry’s rally of 30.7%. Stocks to Consider
Some better-ranked stocks from the broader medical space include
Cardinal Health Inc. ( CAH Quick Quote CAH - Free Report) , Align Technology, Inc. ( ALGN Quick Quote ALGN - Free Report) and Patterson Companies Inc. ( PDCO Quick Quote PDCO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Cardinal Health has a projected long-term earnings growth rate of 5.4%. Align Technology has an estimated long-term earnings growth rate of 18.3%. Patterson Companies has a projected long-term earnings growth rate of 8.9%. Legal Marijuana: An Investor’s Dream
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