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

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Zacks Equity Research
·3 min read
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Chemed (CHE) closed at $478.51 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily gain of 0.48%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq added 1.29%.

CHE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.79, up 12.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $509.33 million, up 7.55% from the year-ago period.

CHE's full-year Zacks Consensus Estimates are calling for earnings of $16.43 per share and revenue of $2.11 billion. These results would represent year-over-year changes of +17.78% and +8.78%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. CHE is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that CHE has a Forward P/E ratio of 29.35 right now. This represents a discount compared to its industry's average Forward P/E of 29.64.

Investors should also note that CHE has a PEG ratio of 2.99 right now. 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. Medical - Outpatient and Home Healthcare stocks are, on average, holding a PEG ratio of 2.98 based on yesterday's closing prices.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.

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


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Zacks Investment Research