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Zacks Industry Outlook Highlights Quest Diagnostics, DaVita, LifeStance Health and Aveanna Healthcare
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 10, 2026 – Today, Zacks Equity Research discusses Quest Diagnostics Inc. (DGX - Free Report) , DaVita Inc. (DVA - Free Report) , LifeStance Health Group, Inc. (LFST - Free Report) and Aveanna Healthcare Holdings Inc. (AVAH - Free Report) .
The Zacks Medical – Outpatient and Home Healthcare industry is rapidly shifting toward digital modes of care delivery. In recent years, there has been a significant rise in demand for telemedicine platforms and artificial intelligence (AI)-powered medical solutions. A growing global aging population is prompting many healthcare providers — traditionally less focused on technology — to embrace tech-enabled offerings to stay competitive.
Per Grand View Research, the global home healthcare market was estimated at $458.3 billion in 2025 and is anticipated to reach $1,015.8 billion by 2033 at a CAGR of 10.5%. Rising healthcare expenses are also a major factor driving MedTech companies to speed up their transition to digital healthcare.
Rising dependence on telehealth and AI is likely to help the industry thrive in the near term. Quest Diagnostics Inc., DaVita Inc., LifeStance Health Group, Inc. and Aveanna Healthcare Holdings Inc. are likely to gain from the prospects.
Industry Description
The industry includes companies delivering ambulatory care in outpatient settings or at home, using advanced technologies for diagnosis, treatment and rehabilitation. Key players operate HMO medical centers, dialysis units and other outpatient facilities. After navigating pandemic-related challenges, both payers and providers are witnessing steady growth, supported by ongoing service innovation.
This strengthens optimism for the coming years, although persistent consumer price inflation remains a concern for the outlook. The pandemic also accelerated innovation across the healthcare system, creating opportunities for further scaling. In addition, the continued shift toward value-based care models and the growing integration of technology across healthcare are expected to support long-term industry growth.
Major Trends Shaping Outpatient and Home Healthcare Industry
Aging Population: One of the primary drivers of the home healthcare market is the aging global population. As people live longer, there is a growing demand for services that cater to chronic disease management, rehabilitation and daily living assistance. The rising elderly population is expected to fuel the need for home healthcare services. As people age, they naturally tend to prefer healthcare services in the familiar and comfortable setting of their homes.
Cost Effectiveness: The primary advantage of outpatient clinics is cost-effectiveness. Outpatient medical care clinics do not retain patients for long hours (overnight) or charge exorbitantly. Modern-day outpatient clinics offer a broad spectrum of treatment and diagnostic options and even minor surgical procedures. Financial incentives like health plans and government program payment policies supporting services in lower-cost care settings have also been driving outpatient care.
Additionally, reduced rates of emergency room visits, readmissions and hospitalizations among patients receiving home-based care further increase healthcare savings by preventing expensive and preventable accidents.
AI's Dominant Role: AI is playing an increasingly important role in healthcare, as it helps enhance patient care through remote monitoring. AI-powered medical devices continuously monitor patients' health conditions and transfer this data to healthcare providers. AI's analytical capabilities allow healthcare providers to respond quickly by analyzing patient data and detecting changes in patients' conditions. This further helps in timely intervention and reduces hospital readmissions.
In addition, AI could make it much easier for caregivers, providers and patients to manage complex home care plans. By coordinating caregiver activities and automatically scheduling doctors' appointments, AI can streamline care management. Recently, home healthcare providers have begun deploying AI to automate administrative tasks such as documentation, billing, workforce management and caregiver onboarding, helping improve operational efficiency amid rising labor shortages.
Technological Advancements: Virtual assistants and chatbots can help patients by answering questions about their care and connecting them with the information they need to make more informed decisions about their care. Increasingly, they will integrate with electronic health record systems to help patients access care information, communicate with providers and manage appointments. They can also help patients stay compliant by reminding them to take medications or exercise.
Home healthcare can gain from the benefits provided by Medicare (and several other payers), comprising a broad range of services that can be delivered in a patient's home, including post-operative and chronic wound care. Home healthcare has seen a surge in the utilization of telehealth and remote patient monitoring platforms since the pandemic. Recent Medicare policies continue to support reimbursement for remote monitoring services, encouraging broader adoption of connected devices and data-driven home care.
At the same time, hospital-at-home and other care-at-home models are gaining traction as providers seek to deliver advanced medical care in lower-cost home settings. With a rise in the elderly population and the increasing costs of in-person healthcare, the demand for home-based healthcare is on the rise. People with chronic illnesses and disabilities also require home-based care.
Staffing Shortages: Staffing shortages remain a structural challenge in U.S. healthcare, especially in home-based care. Persistent burnout, high turnover and skill gaps continue to strain workforce availability. Rising wage inflation and reliance on contract staff are increasing cost pressures, while reimbursement constraints limit hiring flexibility.
Although many states have increased Medicaid payment rates and introduced workforce-support initiatives to improve recruitment and retention, providers continue to report shortages of home health aides, personal care aides and nurses amid rapidly growing demand for home-based services. While technology adoption offers some relief, it cannot fully offset frontline workforce shortages, particularly in labor-intensive outpatient and home healthcare settings.
Zacks Industry Rank
The Zacks Medical - Outpatient and Home Healthcare industry falls within the broader Zacks Medical sector. It has a Zacks Industry Rank #63, which places it in the top 26% of nearly 250 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few outpatient home health stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation picture.
Industry's Stock Market Performance
The industry has outperformed its sector, but underperformed the S&P 500 composite in the past year.
The industry has gained 3.9% over this period compared with the S&P 500's rise of 25.9% and the broader sector's growth of 2.1%.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), commonly used for valuing medical stocks, the industry is currently trading at 16.8X compared with the S&P 500's 21.5X and the sector's 19.9X.
Over the last five years, the industry has traded as high as 23.4X and as low as 16.1X, with the median being at 19.2X.
4 Outpatient and Home Healthcare Stocks to Buy Now
DaVita: This renowned global comprehensive kidney care provider reported first-quarter 2026 results in May. The company registered an uptick in its top and bottom lines and revenue per treatment during the quarter. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were also seen. An uptick in normalized non-acquired treatment was also recorded. On the earnings call, management stated that DVA is taking a disciplined approach to AI. The company has modernized its data infrastructure, thereby standardizing and integrating high-quality data across the enterprise through systems like its proprietary EMR platform. DVA sports a Zacks Rank #1 (Strong Buy).
For this Denver, CO-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 4.8%. The same for earnings indicates an increase of 39.8%.
The company's earnings yield of 7.9% compares favorably with the industry's 5.5%.
LifeStance: A renowned provider of outpatient mental healthcare, LifeStance reported first-quarter 2026 results in May, wherein it recorded a solid uptick in revenues. Its clinician base and visit volumes also improved during the quarter. LFST flaunts a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
For this Scottsdale, AZ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 16.1%. The same for earnings indicates a surge of 500%.
The company's current ratio of 1.48 compares favorably with the industry's 1.31.
Quest Diagnostics: It is a well-known diagnostic information services provider. Quest Diagnostics reported first-quarter 2026 results in April. In the quarter, the company generated double-digit revenue growth in several areas of Advanced Diagnostics, including Quest AD-Detect blood tests for Alzheimer's disease and in several clinical areas of advanced cardiometabolic and endocrine disease. DGX also formed a research collaboration with City of Hope to study the use of Haystack MRD as an aid in cancer monitoring and treatment decisions for four solid tumor cancers at 14 U.S. sites. DGX carries a Zacks Rank #2 (Buy).
For this Secaucus, NJ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 7.2%. The same for earnings indicates an increase of 8.8%.
The company's return on equity of 15.6% compares favorably with the industry's 9.8%.
Aveanna: It is a renowned diversified home care platform focused on providing care to medically complex, high-cost patient populations. This month, the company completed its acquisition of Family First Holding, LLC, thus expanding its specialized care model across an enhanced geographic footprint. In May, AVAH announced its first-quarter 2026 results, wherein it registered a solid uptick in its revenues. Per management, the company's Preferred Payor and Government Affairs strategies supported the continued growth across all of Aveanna's business segments. Its clinical teams continue to deliver high-quality care to the patients in the comfort of their homes. AVAH presently carries a Zacks Rank of 2.
For this Atlanta, GA-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 5%. The same for earnings indicates an increase of 10%.
The company's earnings yield of 9.9% compares favorably with the industry's 5.5%.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Quest Diagnostics, DaVita, LifeStance Health and Aveanna Healthcare
For Immediate Release
Chicago, IL – June 10, 2026 – Today, Zacks Equity Research discusses Quest Diagnostics Inc. (DGX - Free Report) , DaVita Inc. (DVA - Free Report) , LifeStance Health Group, Inc. (LFST - Free Report) and Aveanna Healthcare Holdings Inc. (AVAH - Free Report) .
Industry: Outpatient Home Healthcare
Link: https://www.zacks.com/commentary/2934370/4-outpatient-home-health-stocks-benefiting-from-industry-trends
The Zacks Medical – Outpatient and Home Healthcare industry is rapidly shifting toward digital modes of care delivery. In recent years, there has been a significant rise in demand for telemedicine platforms and artificial intelligence (AI)-powered medical solutions. A growing global aging population is prompting many healthcare providers — traditionally less focused on technology — to embrace tech-enabled offerings to stay competitive.
Per Grand View Research, the global home healthcare market was estimated at $458.3 billion in 2025 and is anticipated to reach $1,015.8 billion by 2033 at a CAGR of 10.5%. Rising healthcare expenses are also a major factor driving MedTech companies to speed up their transition to digital healthcare.
Rising dependence on telehealth and AI is likely to help the industry thrive in the near term. Quest Diagnostics Inc., DaVita Inc., LifeStance Health Group, Inc. and Aveanna Healthcare Holdings Inc. are likely to gain from the prospects.
Industry Description
The industry includes companies delivering ambulatory care in outpatient settings or at home, using advanced technologies for diagnosis, treatment and rehabilitation. Key players operate HMO medical centers, dialysis units and other outpatient facilities. After navigating pandemic-related challenges, both payers and providers are witnessing steady growth, supported by ongoing service innovation.
This strengthens optimism for the coming years, although persistent consumer price inflation remains a concern for the outlook. The pandemic also accelerated innovation across the healthcare system, creating opportunities for further scaling. In addition, the continued shift toward value-based care models and the growing integration of technology across healthcare are expected to support long-term industry growth.
Major Trends Shaping Outpatient and Home Healthcare Industry
Aging Population: One of the primary drivers of the home healthcare market is the aging global population. As people live longer, there is a growing demand for services that cater to chronic disease management, rehabilitation and daily living assistance. The rising elderly population is expected to fuel the need for home healthcare services. As people age, they naturally tend to prefer healthcare services in the familiar and comfortable setting of their homes.
Cost Effectiveness: The primary advantage of outpatient clinics is cost-effectiveness. Outpatient medical care clinics do not retain patients for long hours (overnight) or charge exorbitantly. Modern-day outpatient clinics offer a broad spectrum of treatment and diagnostic options and even minor surgical procedures. Financial incentives like health plans and government program payment policies supporting services in lower-cost care settings have also been driving outpatient care.
Additionally, reduced rates of emergency room visits, readmissions and hospitalizations among patients receiving home-based care further increase healthcare savings by preventing expensive and preventable accidents.
AI's Dominant Role: AI is playing an increasingly important role in healthcare, as it helps enhance patient care through remote monitoring. AI-powered medical devices continuously monitor patients' health conditions and transfer this data to healthcare providers. AI's analytical capabilities allow healthcare providers to respond quickly by analyzing patient data and detecting changes in patients' conditions. This further helps in timely intervention and reduces hospital readmissions.
In addition, AI could make it much easier for caregivers, providers and patients to manage complex home care plans. By coordinating caregiver activities and automatically scheduling doctors' appointments, AI can streamline care management. Recently, home healthcare providers have begun deploying AI to automate administrative tasks such as documentation, billing, workforce management and caregiver onboarding, helping improve operational efficiency amid rising labor shortages.
Technological Advancements: Virtual assistants and chatbots can help patients by answering questions about their care and connecting them with the information they need to make more informed decisions about their care. Increasingly, they will integrate with electronic health record systems to help patients access care information, communicate with providers and manage appointments. They can also help patients stay compliant by reminding them to take medications or exercise.
Home healthcare can gain from the benefits provided by Medicare (and several other payers), comprising a broad range of services that can be delivered in a patient's home, including post-operative and chronic wound care. Home healthcare has seen a surge in the utilization of telehealth and remote patient monitoring platforms since the pandemic. Recent Medicare policies continue to support reimbursement for remote monitoring services, encouraging broader adoption of connected devices and data-driven home care.
At the same time, hospital-at-home and other care-at-home models are gaining traction as providers seek to deliver advanced medical care in lower-cost home settings. With a rise in the elderly population and the increasing costs of in-person healthcare, the demand for home-based healthcare is on the rise. People with chronic illnesses and disabilities also require home-based care.
Staffing Shortages: Staffing shortages remain a structural challenge in U.S. healthcare, especially in home-based care. Persistent burnout, high turnover and skill gaps continue to strain workforce availability. Rising wage inflation and reliance on contract staff are increasing cost pressures, while reimbursement constraints limit hiring flexibility.
Although many states have increased Medicaid payment rates and introduced workforce-support initiatives to improve recruitment and retention, providers continue to report shortages of home health aides, personal care aides and nurses amid rapidly growing demand for home-based services. While technology adoption offers some relief, it cannot fully offset frontline workforce shortages, particularly in labor-intensive outpatient and home healthcare settings.
Zacks Industry Rank
The Zacks Medical - Outpatient and Home Healthcare industry falls within the broader Zacks Medical sector. It has a Zacks Industry Rank #63, which places it in the top 26% of nearly 250 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few outpatient home health stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation picture.
Industry's Stock Market Performance
The industry has outperformed its sector, but underperformed the S&P 500 composite in the past year.
The industry has gained 3.9% over this period compared with the S&P 500's rise of 25.9% and the broader sector's growth of 2.1%.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), commonly used for valuing medical stocks, the industry is currently trading at 16.8X compared with the S&P 500's 21.5X and the sector's 19.9X.
Over the last five years, the industry has traded as high as 23.4X and as low as 16.1X, with the median being at 19.2X.
4 Outpatient and Home Healthcare Stocks to Buy Now
DaVita: This renowned global comprehensive kidney care provider reported first-quarter 2026 results in May. The company registered an uptick in its top and bottom lines and revenue per treatment during the quarter. Solid revenues from both sources and a per-day increase in total U.S. dialysis treatments on a sequential basis were also seen. An uptick in normalized non-acquired treatment was also recorded. On the earnings call, management stated that DVA is taking a disciplined approach to AI. The company has modernized its data infrastructure, thereby standardizing and integrating high-quality data across the enterprise through systems like its proprietary EMR platform. DVA sports a Zacks Rank #1 (Strong Buy).
For this Denver, CO-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 4.8%. The same for earnings indicates an increase of 39.8%.
The company's earnings yield of 7.9% compares favorably with the industry's 5.5%.
LifeStance: A renowned provider of outpatient mental healthcare, LifeStance reported first-quarter 2026 results in May, wherein it recorded a solid uptick in revenues. Its clinician base and visit volumes also improved during the quarter. LFST flaunts a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
For this Scottsdale, AZ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 16.1%. The same for earnings indicates a surge of 500%.
The company's current ratio of 1.48 compares favorably with the industry's 1.31.
Quest Diagnostics: It is a well-known diagnostic information services provider. Quest Diagnostics reported first-quarter 2026 results in April. In the quarter, the company generated double-digit revenue growth in several areas of Advanced Diagnostics, including Quest AD-Detect blood tests for Alzheimer's disease and in several clinical areas of advanced cardiometabolic and endocrine disease. DGX also formed a research collaboration with City of Hope to study the use of Haystack MRD as an aid in cancer monitoring and treatment decisions for four solid tumor cancers at 14 U.S. sites. DGX carries a Zacks Rank #2 (Buy).
For this Secaucus, NJ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 7.2%. The same for earnings indicates an increase of 8.8%.
The company's return on equity of 15.6% compares favorably with the industry's 9.8%.
Aveanna: It is a renowned diversified home care platform focused on providing care to medically complex, high-cost patient populations. This month, the company completed its acquisition of Family First Holding, LLC, thus expanding its specialized care model across an enhanced geographic footprint. In May, AVAH announced its first-quarter 2026 results, wherein it registered a solid uptick in its revenues. Per management, the company's Preferred Payor and Government Affairs strategies supported the continued growth across all of Aveanna's business segments. Its clinical teams continue to deliver high-quality care to the patients in the comfort of their homes. AVAH presently carries a Zacks Rank of 2.
For this Atlanta, GA-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 5%. The same for earnings indicates an increase of 10%.
The company's earnings yield of 9.9% compares favorably with the industry's 5.5%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.