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Genesis Healthcare (GEN) Flat As Market Gains: What You Should Know

Zacks Equity Research

Genesis Healthcare (GEN) closed the most recent trading day at $1.17, making no change from the previous trading session. This move lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.6%.

Prior to today's trading, shares of the operator of nursing homes and senior living communities had lost 7.14% over the past month. This has lagged the Medical sector's loss of 3.37% and the S&P 500's loss of 1.87% in that time.

Investors will be hoping for strength from GEN as it approaches its next earnings release. The company is expected to report EPS of -$0.10, up 68.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, down 7.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.46 per share and revenue of $4.55 billion, which would represent changes of +70.32% and -8.6%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for GEN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. GEN is currently a Zacks Rank #1 (Strong Buy).

The Medical - Nursing Homes industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GEN in the coming trading sessions, be sure to utilize Zacks.com.


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