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Amedisys Banks on Coronavirus-Driven Growth Amid Cost Woes
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On Aug 14, we issued an updated research report on Amedisys, Inc. (AMED - Free Report) ). The company is exploring new opportunities in Home Health and Hospice segments. The stock currently carries a Zacks Rank #3 (Hold).
This renowned home health and hospice services provider has outperformed its industry over the past six months. The stock has rallied 14% against 1.7% decline of the industry.
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the second quarter with better-than-expected earnings and revenues. Second-quarter revenues exceeded the company’s internal expectations as well. An impressive performance by the company’s Hospice division amid the pandemic-led business disruptions buoys optimism.
The quarter was marked by the successful implementation of PDGM and reflected the company’s ability to successfully complete its hospice acquisition, and its strong cash flow generation during these challenging times. The issuance of the full-year guidance by the company instills investors’ confidence.
Meanwhile, we note that, Amedisys has been benefiting from the recent acquisitions of hospice care providers — Asana Hospice, RoseRock Healthcare and Compassionate Care Hospice (CCH) and AseraCare.
Further, the acquisition of Compassionate Care Hospice (CCH), a national hospice care provider, was made with the aim of adding significant new access to Amedisys’ nationwide network of 83 hospice care centers. These previously-closed acquisitions contributed significantly to Amedisys’ top line during the first quarter.
Recently, the company integrated a new operating segment within its business – Personal Care. Per management, this segment is stabilizing and performing per expectation. Moreover, the company is working on expanding the geographical presence of the Personal Care business through inorganic expansion. Amedisys is integrating tuck-in acquisitions like Bring Care Home, East Tennessee Personal Care Services and Intercity.
This apart, the company’s deal with ClearCare (a popular web-based operating platform representing 4,000 Personal Care agencies) creates an opportunity to establish a partnership between Amedisys and Personal Care agencies using the ClearCare platform.
However, elevated costs and operating expenses and a declining operating margin continue to raise concerns. Further, an intensely competitive landscape and regulatory woes weigh on the home health and hospice industry.
Key Picks
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Amedisys Banks on Coronavirus-Driven Growth Amid Cost Woes
On Aug 14, we issued an updated research report on Amedisys, Inc. (AMED - Free Report) ). The company is exploring new opportunities in Home Health and Hospice segments. The stock currently carries a Zacks Rank #3 (Hold).
This renowned home health and hospice services provider has outperformed its industry over the past six months. The stock has rallied 14% against 1.7% decline of the industry.
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the second quarter with better-than-expected earnings and revenues. Second-quarter revenues exceeded the company’s internal expectations as well. An impressive performance by the company’s Hospice division amid the pandemic-led business disruptions buoys optimism.
The quarter was marked by the successful implementation of PDGM and reflected the company’s ability to successfully complete its hospice acquisition, and its strong cash flow generation during these challenging times. The issuance of the full-year guidance by the company instills investors’ confidence.
Amedisys, Inc. Price and Consensus
Amedisys, Inc. price-consensus-chart | Amedisys, Inc. Quote
Meanwhile, we note that, Amedisys has been benefiting from the recent acquisitions of hospice care providers — Asana Hospice, RoseRock Healthcare and Compassionate Care Hospice (CCH) and AseraCare.
Further, the acquisition of Compassionate Care Hospice (CCH), a national hospice care provider, was made with the aim of adding significant new access to Amedisys’ nationwide network of 83 hospice care centers. These previously-closed acquisitions contributed significantly to Amedisys’ top line during the first quarter.
Recently, the company integrated a new operating segment within its business – Personal Care. Per management, this segment is stabilizing and performing per expectation. Moreover, the company is working on expanding the geographical presence of the Personal Care business through inorganic expansion. Amedisys is integrating tuck-in acquisitions like Bring Care Home, East Tennessee Personal Care Services and Intercity.
This apart, the company’s deal with ClearCare (a popular web-based operating platform representing 4,000 Personal Care agencies) creates an opportunity to establish a partnership between Amedisys and Personal Care agencies using the ClearCare platform.
However, elevated costs and operating expenses and a declining operating margin continue to raise concerns. Further, an intensely competitive landscape and regulatory woes weigh on the home health and hospice industry.
Key Picks
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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