Chemed (CHE) closed at $467.36 in the latest trading session, marking a +1.62% move from the prior day. This change outpaced the S&P 500's 0.45% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.52%.
Prior to today's trading, shares of the operator of the Roto-Rooter plumbing service and Vitas Healthcare hospices had lost 1.98% over the past month. This has lagged the Medical sector's loss of 0.05% and the S&P 500's gain of 2.08% in that time.
CHE will be looking to display strength as it nears 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.
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 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CHE is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CHE is holding a Forward P/E ratio of 27.99. Its industry sports an average Forward P/E of 32.18, 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 2.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 2.75 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 99, which puts it in the top 39% 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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