Civitas Solutions (CIVI) Extends ADH Platform to New Jersey
Civitas Solutions, Inc. CIVI recently announced that it has extended its platform of Adult Day Health (ADH) services to the state of New Jersey.
Stock Performance
Civitas Solutions has had an unimpressive run on the bourse over the past three months. The company gained roughly 1.45%, which is lower than the Zacks categorized Medical services sub industry’s addition of almost 3.47%. The current level also compares unfavorably with the S&P 500’s return of 3.10% over the same time frame.
The estimate revision trend seems unfavorable for the stock at this moment, with no estimate moving up in the last 60 days and three downward movements, which is a concern for investors. Notably, the current year estimate for the stock stands at 70 cents per share.
Coming back to the news, the spreading to the state of New Jersey was done through the acquisition of Mi Casa Es Su Casa, Inc., an ADH center in the city of Paterson. Mi Casa provides person-centered day services to elders, including medication management and nutritional and nursing support. Located in the state’s third most populous city, the center has an average daily census of approximately 140 individuals and generated revenues of approximately $3 million annually. With the addition of the Mi Casa center, Civitas now operates ADH centers in the states of Massachusetts, Maryland and New Jersey.
Civitas Solutions entered the $6.9 billion ADH market with the Sep 2014 acquisition of the Mass Adult Day Health Alliance. Including the Mi Casa acquisition, the company operates 24 centers that serve approximately 4,400 elders. In addition, a 25th center was recently constructed in the city of Malden, MA and is slated to open in the next few weeks.
Civitas Solutions is a leading national provider of home and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs.
Zacks Rank & Stocks to Consider
Civitas Solutions has a Zacks Rank #4 (Sell).
Some better-ranked medical stocks are Align Technology, Inc. ALGN, Inogen, Inc. INGN and Accelerate Diagnostics, Inc. AXDX. Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock added roughly 32.8% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 80%.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock added roughly 12% over the last three months.
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