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Genesis Healthcare (GEN) Gains But Lags Market: What You Should Know

Zacks Equity Research

Genesis Healthcare (GEN) closed the most recent trading day at $1.19, moving +0.42% from the previous trading session. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1.42%, and the tech-heavy Nasdaq gained 1.4%.

Coming into today, shares of the operator of nursing homes and senior living communities had lost 4.07% in the past month. In that same time, the Medical sector lost 2.31%, while the S&P 500 gained 0.38%.

GEN will be looking to display strength as it nears its next earnings release. On that day, GEN is projected to report earnings of -$0.10 per share, which would represent year-over-year growth of 68.75%. Our most recent consensus estimate is calling for quarterly revenue of $1.13 billion, down 7.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.46 per share and revenue of $4.55 billion. These totals would mark changes of +70.32% and -8.6%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GEN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GEN is currently sporting a Zacks Rank of #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 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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