On Jun 22, 2015, we issued an updated research report on Amedisys Inc. AMED.
We are encouraged by the continued uptrend observed in Amedisys’ share price over the last three months. The stock is currently hovering around its latest 52-week high of $42.98 (attained on Jun 19).
Moreover, solid upward estimate revisions add an impetus to our view on Amedisys. On the back of a robust earnings performance delivered in the last reported quarter, the company witnessed six upward revisions over the past 60 days with the Zacks Consensus Estimate moving up 15.9% to $1.24 for 2015. The estimate for second-quarter 2015 has also moved up to 33 cents from 30 cents over the same time frame.
Notably, Amedisys reported impressive first-quarter 2015 financial numbers wherein the top and the bottom line exceeded the respective Zacks Consensus Estimate and improved on a year-over-year basis. In Home Health, the company continued to generate strong organic growth in Medicare and non-Medicare revenues. Despite a decline in the quarter’s Hospice revenues, the company witnessed organic growth in the segment.
Amedisys expects this turnaround in the Hospice segment to be a sustainable one. The company is also upbeat about the recent leadership changes at the executive level. At the moment, the company remains strategically focused on increasing its operational efficiency by reducing its cost of revenue and general and administrative expenses.
Moreover, we are encouraged to note that the home health industry is poised for tremendous growth in the long term, driven by an aging U.S. population coupled with home health as a cheaper care modality. Strategic acquisitions and partnerships are also expected to spur growth in the space.
The stock currently carries a Zacks Rank #1 (Strong Buy).
Key Picks in the Sector
Other stocks worth considering in the same sector include AmSurg Corp. AMSG, DaVita HealthCare Partners Inc. DVA and Chemed Corp. CHE, each with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment