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Amedisys to Buy East Tennessee to Expand in Personal Care
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Baton Rouge, LA-based Amedisys Inc. (AMED - Free Report) , a household name in home health and hospice services space, is continuing its acquisition spree. The company recently signed a definitive agreement to buy substantially all of the assets of a Knoxville, TN-based personal care provider, East Tennessee Personal Care Service.
The financial terms of the deal have been kept under wraps. Amedisys expects the transaction to be completed on May 1, 2017.
East Tennessee Personal Care Service offers personal care, homemaker services, personal support and Licensed Practical Nurses (LPNs). With 212 employees, it delivers care to 600 clients per year and generates approximately $5 million in annualized revenues.
Amedisys is highly optimistic about this transaction, which it believes will expand its personal care footprint outside of Massachusetts. The transaction also remains part of the company’s strategy to expand capabilities across the home health continuum and personal care market.
According to the company, collectively with East Tennessee Personal Care Service, the Amedisys Personal Care Division will have 2,700 aides, providing care to 15,600 clients annually at home.
Over the last month, Amedisys consistently traded above the Zacks categorized Medical - Outpatient and Home Healthcare industry. Per the last trading price, overall the company returned 0.71%, as against the 3.44% loss of the broader industry over this period.
The market is particularly positive on its strong Home Health division’s performance where the company witnessed solid organic growth in Medicare and non-Medicare revenues. We are also upbeat about the company’s strategic merger and acquisition activities. Its strong cash balance position further bolsters our confidence.
In this regard, we note that Amedisys’ long-term strategy is to evolve from a traditional home health and hospice care company to one focused on bringing home a range of care, to address the needs of patients. As a result, the company is developing and acquiring new business lines that will complement its existing home care and hospice business and help aged people manage their health more effectively and stay at their homes longer. It is also working to develop or acquire new business lines that are focused on managing patients’ age-related disease processes from the onset till the end of life.
According to a recent report by MarketsandMarkets, the global home healthcare and hospice market is forecasted to reach $349.8 billion by 2020, at a CAGR of 9.0%. Growth will mainly be driven by factors such as rising old-age demography across the globe, growing need of cost-effective healthcare, rising incidences of chronic diseases and technological advancements in devices.
Zacks Rank & Key Picks
Amedisys currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product industry include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and ZELTIQ Aesthetics, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inogen gained 71.3% in the last one year compared with the S&P 500’s gain of 14.3%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.
Orasuresurged 76.8% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.
ZELTIQ Aesthetics gained over 100% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
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Amedisys to Buy East Tennessee to Expand in Personal Care
Baton Rouge, LA-based Amedisys Inc. (AMED - Free Report) , a household name in home health and hospice services space, is continuing its acquisition spree. The company recently signed a definitive agreement to buy substantially all of the assets of a Knoxville, TN-based personal care provider, East Tennessee Personal Care Service.
The financial terms of the deal have been kept under wraps. Amedisys expects the transaction to be completed on May 1, 2017.
East Tennessee Personal Care Service offers personal care, homemaker services, personal support and Licensed Practical Nurses (LPNs). With 212 employees, it delivers care to 600 clients per year and generates approximately $5 million in annualized revenues.
Amedisys is highly optimistic about this transaction, which it believes will expand its personal care footprint outside of Massachusetts. The transaction also remains part of the company’s strategy to expand capabilities across the home health continuum and personal care market.
According to the company, collectively with East Tennessee Personal Care Service, the Amedisys Personal Care Division will have 2,700 aides, providing care to 15,600 clients annually at home.
Over the last month, Amedisys consistently traded above the Zacks categorized Medical - Outpatient and Home Healthcare industry. Per the last trading price, overall the company returned 0.71%, as against the 3.44% loss of the broader industry over this period.
The market is particularly positive on its strong Home Health division’s performance where the company witnessed solid organic growth in Medicare and non-Medicare revenues. We are also upbeat about the company’s strategic merger and acquisition activities. Its strong cash balance position further bolsters our confidence.
In this regard, we note that Amedisys’ long-term strategy is to evolve from a traditional home health and hospice care company to one focused on bringing home a range of care, to address the needs of patients. As a result, the company is developing and acquiring new business lines that will complement its existing home care and hospice business and help aged people manage their health more effectively and stay at their homes longer. It is also working to develop or acquire new business lines that are focused on managing patients’ age-related disease processes from the onset till the end of life.
According to a recent report by MarketsandMarkets, the global home healthcare and hospice market is forecasted to reach $349.8 billion by 2020, at a CAGR of 9.0%. Growth will mainly be driven by factors such as rising old-age demography across the globe, growing need of cost-effective healthcare, rising incidences of chronic diseases and technological advancements in devices.
Zacks Rank & Key Picks
Amedisys currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product industry include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and ZELTIQ Aesthetics, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inogen gained 71.3% in the last one year compared with the S&P 500’s gain of 14.3%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.
Orasuresurged 76.8% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.
ZELTIQ Aesthetics gained over 100% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>