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

Zacks Equity Research

Genesis Healthcare (GEN) closed at $1.16 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Heading into today, shares of the operator of nursing homes and senior living communities had lost 5.74% over the past month, lagging the Medical sector's loss of 2.01% and the S&P 500's gain of 2.87% in that time.

GEN will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2019. The company is expected to report EPS of -$0.13, up 23.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, down 9.77% from the year-ago period.

GEN's full-year Zacks Consensus Estimates are calling for earnings of -$0.74 per share and revenue of $4.59 billion. These results would represent year-over-year changes of +52.26% and -7.75%, respectively.

Any recent changes to analyst estimates for GEN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.08% lower within the past month. GEN is holding a Zacks Rank of #3 (Hold) right now.

The Medical - Nursing Homes industry is part of the Medical sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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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