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Here's Why Pediatrix Medical Can Be a Smart Addition to Your Portfolio
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Key Takeaways
MD shares rose 55.2% in six months, outperforming the industry's 6.7% gain on improving fundamentals.
Pediatrix Medical is seeing higher same-unit revenue from better payer mix, collections and patient acuity.
MD generated $138.1M in Q3 operating cash flow, up sharply from $95.7M a year earlier.
Pediatrix Medical Group, Inc. (MD - Free Report) is well-poised for growth, driven by higher collection activity, improved patient acuity, an increase in contract administrative fees, a favorable payor mix and strategic acquisitions. Over the past six months, shares of MD have jumped 55.2%, outperforming the industry’s 6.7% rise.
Pediatrix Medical — with a market capitalization of $1.8 billion — provides newborn, maternal-fetal, radiology, pediatric cardiology and other pediatric subspecialties physician services. Its forward P/E of 10.35X is lower than the industry average of 17.93X. The company has a Value Score of B.
Courtesy of solid prospects, MD currently sports a Zacks Rank #1 (Strong Buy).
Where Do Estimates for MD Stand?
The Zacks Consensus Estimate for Pediatrix Medical’s 2025 earnings is pegged at $2.07 per share, indicating a 37.1% year-over-year rise. In the past 60 days, it has witnessed five upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $1.9 billion for 2025. MD beat earnings estimates in each of the past four quarters, with an average surprise of 35.4%.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Pediatrix Medical is benefiting from higher same-unit revenues and growth in same-unit pricing supported by improved payer mix, solid RCM cash collections, increased patient acuity and neonatology and higher administrative fees from hospital contracts.
In the third quarter of 2025, same-unit revenues from net reimbursement-related factors increased 7.6% year over year. MD increased its expectation for adjusted EBITDA guidance to a range of $270-$290 million for 2025 from the prior band of $245 million to $255 million. Pediatrix Medical’s total operating expenses declined 11% year over year in the third quarter of 2025. Our model suggests that this metric could decline by nearly 19.5% year over year in 2025, supported by lower practice salaries and benefits, as well as practice supplies and other operating expenses.
Pediatrix Medical is expanding telehealth services in a bid to ensure access to healthcare even when staying at home. Such services lead to a decline in overall healthcare spending, boost access to quality care and bring about improved patient outcomes. It intends to enhance technological support as a means to support clinicians and strengthen its competitive position in high-acuity care.
The company is actively exploring M&A opportunities in core service lines to drive inorganic growth. In September 2025, it acquired several neonatology, maternal-fetal medicine and OB hospitalist practices for a total consideration of $19.2 million. MD also streamlines its portfolio by divesting low-profit, non-core assets to sharpen its focus on core services.
Net cash generated from operations totaled $138.1 million in the third quarter of 2025, up from $95.7 million a year ago. In August 2025, the company authorized a new $250 million share repurchase program. In the third quarter of 2025, it bought back common shares worth $20.9 million under this program.
MD’s Key Risks
There are some factors, however, that investors should keep a careful eye on.
It has been grappling with a significant debt level over the past several years. As of Sept. 30, 2025, the company had a net debt of $602.5 million, which was significantly higher than its cash balance of $340.1 million. This is likely to put pressure on MD’s interest expenses. Its total debt-to-EBITDA of 8.1% remains well above the industry average of 2.4%, limiting financial flexibility.
The Zacks Consensus Estimate for Collegium Pharmaceutical’s current-year earnings of $7.55 per share has witnessed three upward revisions in the past 60 days against no movement in the opposite direction. Collegium Pharmaceutical beat earnings estimates in each of the trailing four quarters, with the average surprise being 10.6%. The consensus estimate for current-year revenues is pegged at $783.9 million, suggesting 24.2% year-over-year growth.
The Zacks Consensus Estimate for ANI Pharmaceuticals’ current-year earnings of $7.56 per share has witnessed five upward revisions in the past 60 days, against no movement in the opposite direction. ANI Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 21.2%. The consensus estimate for current-year revenues is pegged at $870.2 million, suggesting 41.6% year-over-year growth.
The Zacks Consensus Estimate for CorMedix’s current-year earnings of $2.87 per share has witnessed three upward revisions in the past 60 days, against no movement in the opposite direction. CorMedix beat earnings estimates in each of the trailing four quarters, with an average surprise of 27%. The consensus estimate for current-year revenues is pegged at $309.8 million, suggesting 612.7% year-over-year growth.
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Here's Why Pediatrix Medical Can Be a Smart Addition to Your Portfolio
Key Takeaways
Pediatrix Medical Group, Inc. (MD - Free Report) is well-poised for growth, driven by higher collection activity, improved patient acuity, an increase in contract administrative fees, a favorable payor mix and strategic acquisitions. Over the past six months, shares of MD have jumped 55.2%, outperforming the industry’s 6.7% rise.
Pediatrix Medical — with a market capitalization of $1.8 billion — provides newborn, maternal-fetal, radiology, pediatric cardiology and other pediatric subspecialties physician services. Its forward P/E of 10.35X is lower than the industry average of 17.93X. The company has a Value Score of B.
Courtesy of solid prospects, MD currently sports a Zacks Rank #1 (Strong Buy).
Where Do Estimates for MD Stand?
The Zacks Consensus Estimate for Pediatrix Medical’s 2025 earnings is pegged at $2.07 per share, indicating a 37.1% year-over-year rise. In the past 60 days, it has witnessed five upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $1.9 billion for 2025. MD beat earnings estimates in each of the past four quarters, with an average surprise of 35.4%.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote
MD’s Growth Drivers
Pediatrix Medical is benefiting from higher same-unit revenues and growth in same-unit pricing supported by improved payer mix, solid RCM cash collections, increased patient acuity and neonatology and higher administrative fees from hospital contracts.
In the third quarter of 2025, same-unit revenues from net reimbursement-related factors increased 7.6% year over year. MD increased its expectation for adjusted EBITDA guidance to a range of $270-$290 million for 2025 from the prior band of $245 million to $255 million. Pediatrix Medical’s total operating expenses declined 11% year over year in the third quarter of 2025. Our model suggests that this metric could decline by nearly 19.5% year over year in 2025, supported by lower practice salaries and benefits, as well as practice supplies and other operating expenses.
Pediatrix Medical is expanding telehealth services in a bid to ensure access to healthcare even when staying at home. Such services lead to a decline in overall healthcare spending, boost access to quality care and bring about improved patient outcomes. It intends to enhance technological support as a means to support clinicians and strengthen its competitive position in high-acuity care.
The company is actively exploring M&A opportunities in core service lines to drive inorganic growth. In September 2025, it acquired several neonatology, maternal-fetal medicine and OB hospitalist practices for a total consideration of $19.2 million. MD also streamlines its portfolio by divesting low-profit, non-core assets to sharpen its focus on core services.
Net cash generated from operations totaled $138.1 million in the third quarter of 2025, up from $95.7 million a year ago. In August 2025, the company authorized a new $250 million share repurchase program. In the third quarter of 2025, it bought back common shares worth $20.9 million under this program.
MD’s Key Risks
There are some factors, however, that investors should keep a careful eye on.
It has been grappling with a significant debt level over the past several years. As of Sept. 30, 2025, the company had a net debt of $602.5 million, which was significantly higher than its cash balance of $340.1 million. This is likely to put pressure on MD’s interest expenses. Its total debt-to-EBITDA of 8.1% remains well above the industry average of 2.4%, limiting financial flexibility.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space are Collegium Pharmaceutical, Inc. (COLL - Free Report) , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and CorMedix Inc. (CRMD - Free Report) , each currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Collegium Pharmaceutical’s current-year earnings of $7.55 per share has witnessed three upward revisions in the past 60 days against no movement in the opposite direction. Collegium Pharmaceutical beat earnings estimates in each of the trailing four quarters, with the average surprise being 10.6%. The consensus estimate for current-year revenues is pegged at $783.9 million, suggesting 24.2% year-over-year growth.
The Zacks Consensus Estimate for ANI Pharmaceuticals’ current-year earnings of $7.56 per share has witnessed five upward revisions in the past 60 days, against no movement in the opposite direction. ANI Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 21.2%. The consensus estimate for current-year revenues is pegged at $870.2 million, suggesting 41.6% year-over-year growth.
The Zacks Consensus Estimate for CorMedix’s current-year earnings of $2.87 per share has witnessed three upward revisions in the past 60 days, against no movement in the opposite direction. CorMedix beat earnings estimates in each of the trailing four quarters, with an average surprise of 27%. The consensus estimate for current-year revenues is pegged at $309.8 million, suggesting 612.7% year-over-year growth.