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Factors that Make Acadia Healthcare (ACHC) an Attractive Bet Now
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Acadia Healthcare Company, Inc. (ACHC - Free Report) is well-poised for growth, driven by continued top-line improvement on the back of a solid U.S. business, a broad healthcare network resulting from numerous joint ventures (JVs), solid financial guidance for 2022 and a robust financial position.
Zacks Rank & Price Performance
Acadia Healthcare carries a Zacks Rank #2 (Buy) currently.
The stock has gained 18.5% over a year against the industry’s decline of 24.3%. The Zacks Medical sector and the S&P 500 composite have lost 16.4% and 11.3%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
Acadia Healthcare carries an impressive Value Score of B. Value Score helps find stocks that are undervalued. Back-tested results have shown that stocks with a favorable Value Score, when combined with a solid Zacks Rank, are the best investment bets.
Robust Growth Prospects
The Zacks Consensus Estimate for ACHC’s 2022 earnings is pegged at $3.05 per share, indicating an increase of 19.1% on 12.1% higher revenues of $2.6 billion. The consensus mark for 2023 earnings stands at $3.30, suggesting growth of 8.3% on 8.3% higher revenues of $2.8 billion.
The expected long-term earnings growth rate is pegged at 12.5%, better than the industry’s average of 9.6%.
Sound Earnings Surprise History
Acadia Healthcare boasts of a decent earnings surprise record. It has surpassed earnings estimates in two of the trailing four quarters, missed on one occasion and met once, the average surprise being 4.40%.
Solid 2022 Outlook
ACHC projects revenues between $2.55 billion and $2.60 billion, the mid-point of which indicates an increase of nearly 12% from the 2021 reported figure. Adjusted EBITDA is estimated within $575-$610 million, the mid-point of the guidance suggesting 6% growth from the 2021 figure.
Adjusted earnings per diluted share is expected in the $2.85-$3.15 band, implying growth of 17.2% from the 2021 level.
Business Tailwinds
Revenues of Acadia Healthcare continue to benefit on the back of a strong U.S. business that is currently gaining from solid patient volumes and operational efficiencies. Continued incidence of mental health issues among Americans is expected to sustain the solid demand for behavioral healthcare services, which in turn is likely to continue benefiting Acadia Healthcare’s revenues in the days ahead.
Acadia Healthcare often resorts to JVs with renowned U.S. health systems to inaugurate new facilities or expand existing facilities. The recent JV with one of the most well-established integrated health systems of Massachusetts — Tufts Medicine, marks the 17th JV partnership of Acadia Healthcare. It also remains positive about the year 2022, which is likely to be the strongest year of ACHC with respect to JVs.
In addition to enhancing revenues, these growth-related efforts have diversified the healthcare network of Acadia Healthcare and enabled it to delve deeper into areas grappling with inaccessibility to care. The portfolio of ACHC comprised 238 behavioral healthcare facilities stretched throughout 40 states and Puerto Rico as of Mar 31, 2022.
Acadia Healthcare boasts of a strong financial position, supported by cash reserves sufficient enough to service short-term debt obligations. In order to intensify focus on U.S. business and repay debts, ACHC divested its underperforming U.K. operations last year. Evidently, the transaction has been bearing fruits for Acadia Healthcare as its total debt load is witnessing a downtrend. It is worth mentioning that interest expenses tumbled 45.6% year over year in the first quarter of 2022. Its leverage ratio has been improving for a while.
Acadia Healthcare has adequate cash-generating abilities in place, which paves the way for it to undertake uninterrupted business investments. ACHC had $440 million available under its $600-million revolving credit facility as of Mar 31, 2022.
AMN Healthcare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.60%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests 29.6% year-over-year growth, while the same for revenues implies an improvement of 25.5%. AMN Healthcare’s consensus mark for 2022 earnings has moved north by 2.8% in the past 60 days.
Avantor has a trailing four-quarter earnings surprise of 10.93%, on average. The Zacks Consensus Estimate for AVTR’s 2022 earnings indicates 7.1% year-over-year growth, while the same for revenues suggests 7.7% growth. Avantor has a Value Score of B.
The bottom line of ShockWave Medical outpaced estimates in each of the trailing four quarters, the average surprise being 189.99%. The Zacks Consensus Estimate for SWAV’s 2022 earnings is pegged at $2.05 per share, which compares favorably with the prior-year’s loss of 26 cents. The same for revenues indicate growth of 90.5%. ShockWave Medical’s consensus mark for 2022 earnings has moved north by 11.4% in the past 30 days.
Shares of AMN Healthcare and ShockWave Medical have gained 14.6% and 6.5%, respectively, in a year. However, Avantor stock has lost 13.7% in the same time frame.
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Factors that Make Acadia Healthcare (ACHC) an Attractive Bet Now
Acadia Healthcare Company, Inc. (ACHC - Free Report) is well-poised for growth, driven by continued top-line improvement on the back of a solid U.S. business, a broad healthcare network resulting from numerous joint ventures (JVs), solid financial guidance for 2022 and a robust financial position.
Zacks Rank & Price Performance
Acadia Healthcare carries a Zacks Rank #2 (Buy) currently.
The stock has gained 18.5% over a year against the industry’s decline of 24.3%. The Zacks Medical sector and the S&P 500 composite have lost 16.4% and 11.3%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
Acadia Healthcare carries an impressive Value Score of B. Value Score helps find stocks that are undervalued. Back-tested results have shown that stocks with a favorable Value Score, when combined with a solid Zacks Rank, are the best investment bets.
Robust Growth Prospects
The Zacks Consensus Estimate for ACHC’s 2022 earnings is pegged at $3.05 per share, indicating an increase of 19.1% on 12.1% higher revenues of $2.6 billion. The consensus mark for 2023 earnings stands at $3.30, suggesting growth of 8.3% on 8.3% higher revenues of $2.8 billion.
The expected long-term earnings growth rate is pegged at 12.5%, better than the industry’s average of 9.6%.
Sound Earnings Surprise History
Acadia Healthcare boasts of a decent earnings surprise record. It has surpassed earnings estimates in two of the trailing four quarters, missed on one occasion and met once, the average surprise being 4.40%.
Solid 2022 Outlook
ACHC projects revenues between $2.55 billion and $2.60 billion, the mid-point of which indicates an increase of nearly 12% from the 2021 reported figure. Adjusted EBITDA is estimated within $575-$610 million, the mid-point of the guidance suggesting 6% growth from the 2021 figure.
Adjusted earnings per diluted share is expected in the $2.85-$3.15 band, implying growth of 17.2% from the 2021 level.
Business Tailwinds
Revenues of Acadia Healthcare continue to benefit on the back of a strong U.S. business that is currently gaining from solid patient volumes and operational efficiencies. Continued incidence of mental health issues among Americans is expected to sustain the solid demand for behavioral healthcare services, which in turn is likely to continue benefiting Acadia Healthcare’s revenues in the days ahead.
Acadia Healthcare often resorts to JVs with renowned U.S. health systems to inaugurate new facilities or expand existing facilities. The recent JV with one of the most well-established integrated health systems of Massachusetts — Tufts Medicine, marks the 17th JV partnership of Acadia Healthcare. It also remains positive about the year 2022, which is likely to be the strongest year of ACHC with respect to JVs.
In addition to enhancing revenues, these growth-related efforts have diversified the healthcare network of Acadia Healthcare and enabled it to delve deeper into areas grappling with inaccessibility to care. The portfolio of ACHC comprised 238 behavioral healthcare facilities stretched throughout 40 states and Puerto Rico as of Mar 31, 2022.
Acadia Healthcare boasts of a strong financial position, supported by cash reserves sufficient enough to service short-term debt obligations. In order to intensify focus on U.S. business and repay debts, ACHC divested its underperforming U.K. operations last year. Evidently, the transaction has been bearing fruits for Acadia Healthcare as its total debt load is witnessing a downtrend. It is worth mentioning that interest expenses tumbled 45.6% year over year in the first quarter of 2022. Its leverage ratio has been improving for a while.
Acadia Healthcare has adequate cash-generating abilities in place, which paves the way for it to undertake uninterrupted business investments. ACHC had $440 million available under its $600-million revolving credit facility as of Mar 31, 2022.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space include AMN Healthcare Services, Inc. (AMN - Free Report) , Avantor, Inc. (AVTR - Free Report) and ShockWave Medical, Inc. (SWAV - Free Report) . While AMN Healthcare and ShockWave Medical sport a Zacks Rank #1 (Strong Buy), Avantor carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.60%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests 29.6% year-over-year growth, while the same for revenues implies an improvement of 25.5%. AMN Healthcare’s consensus mark for 2022 earnings has moved north by 2.8% in the past 60 days.
Avantor has a trailing four-quarter earnings surprise of 10.93%, on average. The Zacks Consensus Estimate for AVTR’s 2022 earnings indicates 7.1% year-over-year growth, while the same for revenues suggests 7.7% growth. Avantor has a Value Score of B.
The bottom line of ShockWave Medical outpaced estimates in each of the trailing four quarters, the average surprise being 189.99%. The Zacks Consensus Estimate for SWAV’s 2022 earnings is pegged at $2.05 per share, which compares favorably with the prior-year’s loss of 26 cents. The same for revenues indicate growth of 90.5%. ShockWave Medical’s consensus mark for 2022 earnings has moved north by 11.4% in the past 30 days.
Shares of AMN Healthcare and ShockWave Medical have gained 14.6% and 6.5%, respectively, in a year. However, Avantor stock has lost 13.7% in the same time frame.