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Pediatrix Medical Group, Inc. (MD) Soars to 52-Week High, Time to Cash Out?

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Have you been paying attention to shares of Pediatrix Medical Group (MD - Free Report) ? Shares have been on the move with the stock up 2.5% over the past month. The stock hit a new 52-week high of $17.77 in the previous session. Pediatrix Medical Group has gained 33.4% since the start of the year compared to the 3.6% move for the Zacks Medical sector and the 5.2% return for the Zacks Medical Services industry.

What's Driving the Outperformance?

The stock has an impressive 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 5, 2025, Pediatrix Medical Group reported EPS of $0.53 versus consensus estimate of $0.42 while it beat the consensus revenue estimate by 0.43%.

For the current fiscal year, Pediatrix Medical Group is expected to post earnings of $1.78 per share on $1.89 in revenues. This represents a 17.88% change in EPS on a -6.3% change in revenues. For the next fiscal year, the company is expected to earn $1.8 per share on $1.94 in revenues. This represents a year-over-year change of 1.12% and 2.63%, respectively.

Valuation Metrics

Pediatrix Medical Group may be at a 52-week high right now, but what might the future hold for the stock? 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.

Pediatrix Medical Group has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 9.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.4X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 10.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Pediatrix Medical Group an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Pediatrix Medical Group currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

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 Pediatrix Medical Group meets the list of requirements. Thus, it seems as though Pediatrix Medical Group shares could have potential in the weeks and months to come.

How Does MD Stack Up to the Competition?

Shares of MD 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 Charles River Laboratories International, Inc. (CRL - Free Report) . CRL has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of D.

Earnings were strong last quarter. Charles River Laboratories International, Inc. beat our consensus estimate by 24.80%, and for the current fiscal year, CRL is expected to post earnings of $10.11 per share on revenue of $3.97 billion.

Shares of Charles River Laboratories International, Inc. have gained 8.1% over the past month, and currently trade at a forward P/E of 17.54X and a P/CF of 8.17X.

The Medical Services industry may rank in the bottom 57% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for MD and CRL, even beyond their own solid fundamental situation.


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