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Chemed (CHE) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·3 min read
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Chemed (CHE) closed the most recent trading day at $450, moving +1.12% from the previous trading session. This change outpaced the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.09%.

Wall Street will be looking for positivity from CHE as it approaches its next earnings report date. In that report, analysts expect CHE to post earnings of $3.79 per share. This would mark year-over-year growth of 12.8%. Our most recent consensus estimate is calling for quarterly revenue of $509.33 million, up 7.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.43 per share and revenue of $2.11 billion, which would represent changes of +17.78% and +8.78%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CHE. These revisions help to show the ever-changing nature of near-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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CHE is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CHE is holding a Forward P/E ratio of 27.08. Its industry sports an average Forward P/E of 32.49, so we one might conclude that CHE is trading at a discount comparatively.

It is also worth noting that CHE currently has a PEG ratio of 2.76. 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. Medical - Outpatient and Home Healthcare stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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Zacks Investment Research