Back to top

Image: Bigstock

Amedisys' Arm Buys Intercity Home Care, Boosts U.S. Base

Read MoreHide Full Article

Keeping pace with the expected timeline for completion, Amedisys, Inc. (AMED - Free Report) recently announced that its subsidiary Associated Home Care has closed the purchase of Intercity Home Care, a Massachusetts-based personal care provider. Notably, Intercity Home Care’s entire asset base has been taken over by Associated Home Care.

With this acquisition, the renowned home health and hospice services provider will have a more widespread presence in Massachusetts. Intercity Home Care has four locations across Greater Boston, North Shore and Merrimack Valley communities. Also, Amedisys will gain access to an extended customer base as the health-healing service provider/Intercity Home Care expects to serve around 19,000 clients in the above-mentioned U.S. state.

The company has been making some encouraging moves with respect to the recently integrated Personal Care business. During the latest reported quarter, net service revenues at Personal Care witnessed a 53.2% rise year over year.

Additionally, Amedisys looks forward to huge growth prospects within personal care segment. The segment in fact performs in sync with management’s expectations as integration of recent tuck-in acquisitions follows.

Amedisys Inc Price and Consensus

Amedisys Inc Price and Consensus | Amedisys Inc Quote

Earlier in March, the company had decided to buy personal care provider, East Tennessee Personal Care Service. It believes this buyout to expand its personal care footprint beyond Massachusetts. Notably, the company’s management expects it to be well-stocked with enough cash balance to manoeuvre plenty of such acquisitions in the future.

Amedisys is currently exploring opportunities in the Home Health and Hospice segments too. The company’s favorable demographic trend and strategic acquisitions are impressive as well.

Over the past six months, the company’s share price has outperformed the broader industry. The stock has gained 10.5% versus the broader industry’s 2.9% loss.

Zacks Rank and Other Key Picks

Amedisys currently carries a Zacks Rank #3 (Hold). Some better-ranked medical stocks are IDEXX Laboratories, Inc. (IDXX - Free Report) , Luminex Corporation and Masimo Corporation (MASI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDEXX Laboratories has a positive earnings surprise of 9.3% over the last four quarters. The stock has roughly surged 39.2% over the last year.

Luminex Corporation has a long-term expected earnings growth rate of more than 16%. The stock has gained around 8% over the last month.

Masimo has long-term historical adjusted earnings growth of 14.4%. The stock has rallied nearly 29% year to date.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in