As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the senior health, home health & hospice industry, including Chemed (NYSE: CHE) and its peers.

The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.

The 7 senior health, home health & hospice stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.8%.

In light of this news, share prices of the companies have held steady as they are up 4.6% on average since the latest earnings results.

Chemed (NYSE: CHE)

With a unique business model combining end-of-life care and household services, Chemed (NYSE: CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.

Chemed reported revenues of $624.9 million, up 3.1% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $441.72.

Read our full report on Chemed here, it’s free for active Edge members.

Best Q3: The Pennant Group (NASDAQ: PNTG)

Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ: PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.

The Pennant Group reported revenues of $229 million, up 26.8% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

The Pennant Group achieved the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $26.67.

Is now the time to buy The Pennant Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Brookdale (NYSE: BKD)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ revenue estimates.

Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19% since the results and currently trades at $10.85.

Read our full analysis of Brookdale’s results here.

Addus HomeCare (NASDAQ: ADUS)

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Addus HomeCare reported revenues of $362.3 million, up 25% year on year. This print topped analysts’ expectations by 2.2%. It was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 4.7% since reporting and currently trades at $113.40.

Read our full, actionable report on Addus HomeCare here, it’s free for active Edge members.

BrightSpring Health Services (NASDAQ: BTSG)

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

BrightSpring Health Services reported revenues of $3.33 billion, up 14.7% year on year. This number beat analysts’ expectations by 5.3%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

BrightSpring Health Services achieved the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 2% since reporting and currently trades at $34.67.

Read our full, actionable report on BrightSpring Health Services here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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