We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aveanna Healthcare Holdings Inc. (AVAH) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
Shares of Aveanna Healthcare (AVAH - Free Report) have been strong performers lately, with the stock up 9.4% over the past month. The stock hit a new 52-week high of $8.79 in the previous session. Aveanna has gained 91.5% since the start of the year compared to the -3.1% move for the Zacks Medical sector and the 11.7% return for the Zacks Medical - Outpatient and Home Healthcare industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 7, 2025, Aveanna reported EPS of $0.18 versus consensus estimate of $0.04 while it beat the consensus revenue estimate by 9.93%.
For the current fiscal year, Aveanna is expected to post earnings of $0.41 per share on $2.31 in revenues. This represents a 600% change in EPS on a 14.24% change in revenues. For the next fiscal year, the company is expected to earn $0.48 per share on $2.43 in revenues. This represents a year-over-year change of 15.48% and 5.07%, respectively.
Valuation Metrics
Though Aveanna has recently hit a 52-week high, what is next for Aveanna? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Aveanna has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.1X. On a trailing cash flow basis, the stock currently trades at 53.4X versus its peer group's average of 20X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Aveanna currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Aveanna passes the test. Thus, it seems as though Aveanna shares could have potential in the weeks and months to come.
How Does AVAH Stack Up to the Competition?
Shares of AVAH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Encompass Health Corporation (EHC - Free Report) . EHC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Encompass Health Corporation beat our consensus estimate by 16.67%, and for the current fiscal year, EHC is expected to post earnings of $5.24 per share on revenue of $5.92 billion.
Shares of Encompass Health Corporation have gained 4.1% over the past month, and currently trade at a forward P/E of 24.17X and a P/CF of 16.76X.
The Medical - Outpatient and Home Healthcare industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AVAH and EHC, even beyond their own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Aveanna Healthcare Holdings Inc. (AVAH) Hits Fresh High: Is There Still Room to Run?
Shares of Aveanna Healthcare (AVAH - Free Report) have been strong performers lately, with the stock up 9.4% over the past month. The stock hit a new 52-week high of $8.79 in the previous session. Aveanna has gained 91.5% since the start of the year compared to the -3.1% move for the Zacks Medical sector and the 11.7% return for the Zacks Medical - Outpatient and Home Healthcare industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 7, 2025, Aveanna reported EPS of $0.18 versus consensus estimate of $0.04 while it beat the consensus revenue estimate by 9.93%.
For the current fiscal year, Aveanna is expected to post earnings of $0.41 per share on $2.31 in revenues. This represents a 600% change in EPS on a 14.24% change in revenues. For the next fiscal year, the company is expected to earn $0.48 per share on $2.43 in revenues. This represents a year-over-year change of 15.48% and 5.07%, respectively.
Valuation Metrics
Though Aveanna has recently hit a 52-week high, what is next for Aveanna? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Aveanna has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.1X. On a trailing cash flow basis, the stock currently trades at 53.4X versus its peer group's average of 20X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Aveanna currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Aveanna passes the test. Thus, it seems as though Aveanna shares could have potential in the weeks and months to come.
How Does AVAH Stack Up to the Competition?
Shares of AVAH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Encompass Health Corporation (EHC - Free Report) . EHC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Encompass Health Corporation beat our consensus estimate by 16.67%, and for the current fiscal year, EHC is expected to post earnings of $5.24 per share on revenue of $5.92 billion.
Shares of Encompass Health Corporation have gained 4.1% over the past month, and currently trade at a forward P/E of 24.17X and a P/CF of 16.76X.
The Medical - Outpatient and Home Healthcare industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AVAH and EHC, even beyond their own solid fundamental situation.