Chemed (CHE) closed at $435.24 in the latest trading session, marking a +1.72% move from the prior day. This change outpaced the S&P 500's 1.31% gain on the day. Meanwhile, the Dow gained 1.9%, and the Nasdaq, a tech-heavy index, added 1.01%.
Investors will be hoping for strength from CHE as it approaches its next earnings release. In that report, analysts expect CHE to post earnings of $3.79 per share. This would mark year-over-year growth of 12.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $509.33 million, up 7.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.43 per share and revenue of $2.11 billion. These totals would mark changes of +17.78% and +8.78%, respectively, from last year.
Any recent changes to analyst estimates for CHE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CHE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, CHE is holding a Forward P/E ratio of 26.04. Its industry sports an average Forward P/E of 32.41, so we one might conclude that CHE is trading at a discount comparatively.
Meanwhile, CHE's PEG ratio is currently 2.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 2.62 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 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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