Back to top

Image: Bigstock

Humana (HUM) to Buy onehome to Expand in Homehealth Care

Read MoreHide Full Article

Humana Inc. (HUM - Free Report) inked a deal to purchase home health provider One Homecare Solutions (onehome) from private equity group WayPoint Capital Partners.

Notably, Miramar, FL-based One Homecare Solutions provides home-based services, such as nursing, physical therapy, infusion care, etc. The deal is expected to close in the second quarter of 2021. With this deal, the health insurer will penetrate further into the home health business space.
Moreover, given the current situation, this is the right time to invest in the home health model, which allows patients to get treatment within the comforts of their homes.

onehome has been providing healthcare to Humana members since 2015 through its point of accountability that seamlessly coordinates with patients, physicians, health plans, etc. It owns and manages home-based DME and infusion services for members in its main markets, which can be expanded in the future. Both companies share the same vision of providing value-based, enriched medical care at home.

The deal is in line with the company’s April declaration of acquiring the remaining 60% interest in Kindred at Home, the nation’s largest home health and hospice provider.

These deals definitely place this currently Zacks Rank #3 (Hold) company as a value-based home health care provider on a national scale. The combination of onehome’ value-based approach and risk-taking abilities, Kindred’s home health medical services and Humana's analytical capabilities as well as clinical approach will surely help Humana emerge as a leading home healthcare company.

The company’s series of buyouts have always carved a growth path for the company. It recently announced its iCare buyout in Wisconsin during last December, which expanded its Medicare business.

In April, one of its peers, Anthem Inc. (ANTM - Free Report) acquired myNEXUS, Inc., a home-based nursing management company for payors.

Notably, the health insurance industry is poised for tremendous growth in the long term, driven by the aging U.S. population, patients' desire for independence and the home health as a cheaper care modality. Players in the industry should continue to benefit from the demographics of U.S. senior citizens and the need for looking after higher acuity patients in a home-nursing environment.  

Shares of Humana have gained 9.8% in a year’s time, underperforming its industry’s growth of 32%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the same space are The Joint Corp. (JYNT - Free Report) and Select Medical Holdings Corporation (SEM - Free Report) , each holding a Zacks Rank #2 (Buy) at present.

Joint Corp. and Select Medical Holdings managed to deliver a trailing four-quarter earnings surprise of 199.17% and 245.91%, respectively.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>