Back to top

Image: Bigstock

Addus HomeCare (ADUS) Stock Jumps 6.5%: Will It Continue to Soar?

Read MoreHide Full Article

Addus HomeCare (ADUS - Free Report) shares rallied 6.5% in the last trading session to close at $88.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.4% loss over the past four weeks.

Addus HomeCare recorded a price surge after news surfaced regarding its acquisition-related activities for the year. Per Hospice News, the company is currently seeking to build out its care continuum from personal care to home health and hospice. Addus’ management also reportedly confirmed that the company’s goal is to strive for greater coordination between its three business lines to allow for timely and smooth transitions of care. Additionally, the latest Zacks Consensus Estimate for first-quarter 2022 earnings and revenues show significant upward revisions compared to the year-ago reported number. The company is expected to release its first-quarter 2022 earnings on May 2, 2022.

This provider of home-based personal care, nursing and rehabilitative therapy services is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +9.5%. Revenues are expected to be $226.31 million, up 10.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Addus HomeCare, the consensus EPS estimate for the quarter has been revised 15.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ADUS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Addus HomeCare is part of the Zacks Medical - Outpatient and Home Healthcare industry. U.S. Physical Therapy (USPH - Free Report) , another stock in the same industry, closed the last trading session 1.2% higher at $96.33. USPH has returned 3.5% in the past month.

For U.S. Physical Therapy, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. This represents no change from what the company reported a year ago. U.S. Physical Therapy currently has a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Addus HomeCare Corporation (ADUS) - free report >>

U.S. Physical Therapy, Inc. (USPH) - free report >>

Published in