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Amedisys (AMED) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Amedisys (AMED) closed at $195.13, marking a +1.28% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.11%.

Coming into today, shares of the home health care and hospice services provider had gained 9.19% in the past month. In that same time, the Medical sector gained 1.18%, while the S&P 500 gained 2.78%.

Wall Street will be looking for positivity from AMED as it approaches its next earnings report date. This is expected to be February 18, 2020. In that report, analysts expect AMED to post earnings of $0.93 per share. This would mark year-over-year growth of 2.2%. Our most recent consensus estimate is calling for quarterly revenue of $510.37 million, up 17.49% from the year-ago period.

Investors might also notice recent changes to analyst estimates for AMED. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. AMED is currently a Zacks Rank #3 (Hold).

In terms of valuation, AMED is currently trading at a Forward P/E ratio of 38.98. Its industry sports an average Forward P/E of 31.07, so we one might conclude that AMED is trading at a premium comparatively.

Investors should also note that AMED has a PEG ratio of 2.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 2.6 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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