Back to top

Image: Bigstock

Here's Why You Should Invest in Amedisys (AMED) Right Now

Read MoreHide Full Article

Amedisys, Inc. (AMED - Free Report) has an impressive growth trajectory, courtesy of robust performance inthe Personal Care segment.

The stock has rallied 8.9% in the past year compared with the industry’s 19.5% decline.

This renowned global provider of home health and hospice services has a market cap of $4.34 billion. The company has an expected earnings growth rate of 16.3% for the next three to five years.

Banking on solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Improving Clinical Quality: Amedisys is focusing on improving clinical  quality. Notably,the company’scurrent Quality of Care Star QPC score is 4.25. Ithas 47 care centers rated at 5 stars, with 92% of overall portfolio rated at 4 stars or better. Patient Satisfaction average, per the last evaluation, was 3.96. Notably, it has outperformed the industry average of 3.70. Amedisys is targeting to achieve a 4.0 Quality Star Rating for all its care centers.

Amedisys, Inc. Price

 

 

Strategic Acquisitions and Partnerships to Add Values: Amedisys is developing and acquiring new business lines that will complement its existing home care and hospice business. These businesses will enable senior patients to manage their health more effectively and stay attheir homes. In July 2019, the company announced a crucial partnership with ClearCare, the personal care industry's leading software platform. ClearCarehas 4,000 personal care agencies in every zip code in the United States.

The recently-closed acquisitions of RoseRock and Compassionate Care Hospicecontributed significantly to thetop line during the second quarter.

Personal Care Prospects Bright: Recently, the company integrated a new operating segment in the Personal Care business. During the last-reported quarter, net service revenues totaled $21 million andtotal hours per quarter rose approximately 6%.Amedisys is integrating tuck-in acquisitions like Bring Care Home, East Tennessee Personal Care Services and Intercity. According to the company, these buyouts will widenits personal care footprint outside Massachusetts and Florida.

Which Way Are Estimates Treading?

For the third quarter of fiscal 2019, the Zacks Consensus Estimate for earnings is pegged at 89 cents. The figureindicates 6.3% fall from the year-ago quarter’s reported figure. The same for revenues is pegged at $493.7 million, calling for year-over-year growth of 18.3%.

For 2019, the Zacks Consensus Estimate for earnings is pegged at $4.11 that suggests 13.2% year-over-year growth. The same for revenues is pegged at $1.97 billion, which indicates18.5% rise from the prior-year quarter’s reported figure.

Other Stocks Worth a Look

Some other top-ranked stocks in the broader medical space are Medtronic (MDT - Free Report) , Baxter (BAX - Free Report) and NuVasive . Each of the stocks carry a Zacks Rank #2.

Medtronic’s long-term earnings growth rate is expected to be 7.13%.

Baxter’s long-term earnings growth rate is projected at 12.8%.

NuVasive’s long-term earnings growth rate is expected to be 12.75%

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


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


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

Medtronic PLC (MDT) - free report >>

Baxter International Inc. (BAX) - free report >>

Published in