Back to top

Amedisys (AMED) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Amedisys (AMED - Free Report) closed at $129.41 in the latest trading session, marking a +1.47% move from the prior day. This change lagged the S&P 500's 1.56% gain on the day. Elsewhere, the Dow gained 1.77%, while the tech-heavy Nasdaq added 2.2%.

Prior to today's trading, shares of the home health care and hospice services provider had gained 8.9% over the past month. This has outpaced the Medical sector's gain of 3.07% and the S&P 500's gain of 6.41% in that time.

AMED will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2019. On that day, AMED is projected to report earnings of $0.85 per share, which would represent year-over-year growth of 51.79%. Meanwhile, our latest consensus estimate is calling for revenue of $426.49 million, up 5.5% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for AMED. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AMED is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, AMED currently has a Forward P/E ratio of 31.58. This represents a premium compared to its industry's average Forward P/E of 23.92.

Investors should also note that AMED has a PEG ratio of 1.68 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Outpatient and Home Healthcare was holding an average PEG ratio of 1.75 at yesterday's closing price.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Amedisys, Inc. (AMED) - free report >>

Published in