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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 $1.38, moving +0.01% from the previous trading session. This change lagged the S&P 500's 0.41% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.7%.

Coming into today, shares of the operator of nursing homes and senior living communities had gained 30.19% in the past month. In that same time, the Medical sector lost 0.65%, while the S&P 500 gained 2.04%.

Investors will be hoping for strength from GEN as it approaches 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, down 7.17% from the year-ago period.

GEN's full-year Zacks Consensus Estimates are calling for earnings of -$0.46 per share and revenue of $4.55 billion. These results would represent year-over-year changes of +70.32% and -8.6%, respectively.

Investors should also note any recent changes to analyst estimates for GEN. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection 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 group has a Zacks Industry Rank of 22, putting it in the top 9% 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.

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


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