The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how BrightSpring Health Services (NASDAQ: BTSG) and the rest of the senior health, home health & hospice stocks fared in Q1.
The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.
The 7 senior health, home health & hospice stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3%.
In light of this news, share prices of the companies have held steady as they are up 4.9% on average since the latest earnings results.
Best Q1: BrightSpring Health Services (NASDAQ: BTSG)
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
BrightSpring Health Services reported revenues of $2.88 billion, up 11.7% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.
“BrightSpring’s focus on serving patients with quality and efficient care in home and community settings continues to be foundational to the Company’s growth and financial performance,” said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company.
BrightSpring Health Services pulled off the highest full-year guidance raise of the whole group. The stock is up 32.8% since reporting and currently trades at $23.76.
Is now the time to buy BrightSpring Health Services? Access our full analysis of the earnings results here, it’s free.
The Pennant Group (NASDAQ: PNTG)
Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ: PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.
The Pennant Group reported revenues of $209.8 million, up 33.7% year on year, outperforming analysts’ expectations by 4.1%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ sales volume estimates.
The Pennant Group pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $28.06.
Is now the time to buy The Pennant Group? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Brookdale (NYSE: BKD)
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Brookdale reported revenues of $813.9 million, up 4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 5.4% since the results and currently trades at $6.42.
Read our full analysis of Brookdale’s results here.
AdaptHealth (NASDAQ: AHCO)
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
AdaptHealth reported revenues of $777.9 million, down 1.8% year on year. This result surpassed analysts’ expectations by 1.7%. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
AdaptHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 2.8% since reporting and currently trades at $8.94.
Read our full, actionable report on AdaptHealth here, it’s free.
Chemed (NYSE: CHE)
With a unique business model combining end-of-life care and household services, Chemed (NYSE: CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.
Chemed reported revenues of $646.9 million, up 9.8% year on year. This print topped analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter as it also produced a decent beat of analysts’ EPS estimates.
The stock is down 4.3% since reporting and currently trades at $561.44.
Read our full, actionable report on Chemed here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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