​Addus HomeCare Corporation (NASDAQ:ADUS) is one of the Overlooked Small Cap Stocks to Buy Now. Wall Street has a positive opinion on Addus HomeCare Corporation (NASDAQ:ADUS) ahead of its fiscal Q4 2025 earnings, expected to be released on February 24, 2026. Analysts expect the company to post roughly $372.87 million in revenue, along with a GAAP EPS of $1.56. ​On January 7, Clarke Murphy from Truist Financial initiated Addus HomeCare Corporation (NASDAQ:ADUS) with a Buy rating and a $135 price target. Ea ...

Core Viewpoint - Addus HomeCare Corporation (ADUS) has encountered significant challenges over the past five years, primarily due to a labor shortage and rising interest rates, impacting its operations in the labor-intensive elderly care sector [1]. Industry Insights - The elderly care industry is expected to experience substantial earnings growth driven by demographic changes, presenting attractive investment opportunities [1]. - Many stocks within the elderly care sector are currently trading below their fair value, indicating potential for future appreciation [1].

A live broadcast of Addus HomeCare's conference call will be available under the Investor Relations section of the Company's website: www.addus.com. An online replay will also be available on the Company's website for one month, beginning approximately two hours following the conclusion of the live broadcast. About Addus HomeCare FRISCO, Texas--(BUSINESS WIRE)--Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home care services, announced today that it will release earnings for the fourth quarter an ...

Core Viewpoint - Addus HomeCare Inc. has experienced a short-term stock increase of 1.48% over the past month, but a significant long-term decline of 16.61% over the past year, prompting a review of its price-to-earnings (P/E) ratio by long-term shareholders [1] Group 1: Stock Performance - The current share price of Addus HomeCare Inc. is $110.07, reflecting a slight drop of 0.12% [1] - The stock has shown a short-term performance increase of 1.48% in the last month, contrasting with a long-term decline of 16.61% over the past year [1] Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [3] - Addus HomeCare has a lower P/E ratio compared to the aggregate P/E of 108.0 for the Health Care Providers & Services industry, which may suggest that the stock could underperform relative to its peers [4] - A lower P/E ratio may indicate that the company is undervalued, but it could also reflect a lack of expected future growth from shareholders [7] Group 3: Limitations of P/E Ratio - While the P/E ratio is useful for market performance analysis, it has limitations and should not be used in isolation [7] - Other factors, such as industry trends and business cycles, can significantly impact a company's stock price, necessitating a comprehensive approach to investment analysis [7]

Industry Overview - The Medical sector is undergoing a significant transformation as it approaches 2026, shifting from a defensive haven to a growth engine driven by innovation and demographic demand [1] - Key trends include the integration of artificial intelligence into clinical workflows, enhancing efficiency and precision in diagnostics and drug discovery [2] - The industry faces cost inflation and regulatory changes, pushing providers towards value-based care and operational innovation, while aging populations and chronic diseases sustain long-term demand [3] Stock Recommendations - Analysts are bullish on three medical stocks: Cencora, Inc. (COR), Addus HomeCare Corporation (ADUS), and Select Medical Holdings Corporation (SEM), due to their operational strength and long-term growth potential [4][5] - All three stocks have a Zacks Rank 2 (Buy), a VGM Score of A, and a market capitalization exceeding $1 billion, with over 70% of brokers rating them as a strong buy or buy [6] Cencora, Inc. (COR) - Cencora is benefiting from higher unit volume and improved sales of GLP-1 drugs and specialty products, with strong performance in Canada and strategic investments in European distribution [10] - The Zacks Consensus Estimate for COR's fiscal 2026 earnings is $17.62 per share, indicating a 10.1% year-over-year increase, with six upward estimate revisions in the past 60 days [12] Addus HomeCare Corporation (ADUS) - Addus provides personal care services to elderly and chronically ill individuals, with stable hiring trends and growing market size due to the cost benefits of home-based healthcare [13] - The Zacks Consensus Estimate for ADUS's 2025 earnings is $6.19 per share, signaling a 17.7% year-over-year growth, followed by a 10.7% increase in 2026 to $6.85 [15] Select Medical Holdings Corporation (SEM) - Select Medical operates critical illness recovery facilities and rehabilitation clinics, with strategic expansions and rising patient admissions driving performance [16] - The Zacks Consensus Estimate for SEM's 2025 earnings is $1.23 per share, indicating a 30.9% year-over-year jump, followed by a 9.9% increase in 2026 to $1.36 [18]

Core Insights - Investors are increasingly seeking growth stocks that demonstrate above-average growth in financials, which can lead to exceptional returns, but identifying such stocks is challenging due to inherent volatility and risks [1] Company Overview - Addus HomeCare (ADUS) is currently highlighted as a recommended growth stock, benefiting from a favorable Growth Score and a top Zacks Rank [2] Earnings Growth - The historical EPS growth rate for Addus HomeCare stands at 16.1%, but projected EPS growth for this year is significantly higher at 29.5%, surpassing the industry average of 19.9% [5] Cash Flow Growth - Addus HomeCare exhibits a year-over-year cash flow growth of 19.5%, which is substantially higher than the industry average of 1.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 21.4%, compared to the industry average of 7% [7] Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Addus HomeCare, with the Zacks Consensus Estimate for the current year increasing by 1.2% over the past month [8] Conclusion - Addus HomeCare has achieved a Zacks Rank of 2 and a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors [10]

Addus HomeCare FY Conference Summary Company Overview - **Company**: Addus HomeCare (NasdaqGS:ADUS) - **Industry**: Home-based care and support services, focusing on personal care, hospice, and home health Key Points and Arguments Operational Opportunities and Priorities - **Caregiver App**: High utilization rates observed in Illinois, with plans to roll out in New Mexico and Texas, aiming to increase service utilization percentage [3][4] - **Census Growth**: Illinois has seen an increase in admissions while discharges decrease, setting up for growth in 2026 [4][6] - **Integration of Services**: Long-term strategy to connect personal care services (PCS) with skilled home health and hospice for seamless care [5] Financial Metrics and Growth Projections - **Revenue Growth**: Targeting 3%-5% revenue growth, split evenly between volume and rate [6] - **Census Metrics**: Consistent growth in census expected, with New Mexico showing over 3% growth post-redetermination [9][10] - **Fill Rate**: Current fill rate at approximately 83%-83.5%, with a goal to reach mid-80s [12][16] Reimbursement Environment - **Medicaid Landscape**: Ongoing uncertainty in Medicaid reimbursement, particularly in New Mexico and Pennsylvania, with expectations for potential rate updates in early 2026 [19][20] - **Advocacy for Rate Increases**: Emphasis on the importance of reimbursement increases to support caregiver wages and attract more caregivers [21][30] Market Dynamics and Competitive Positioning - **Low-Cost Provider Advantage**: Addus positions itself as a low-cost provider, emphasizing the cost savings of home care versus skilled nursing facilities [24] - **Minimum Wage Increases**: Minimal impact from recent minimum wage increases in certain states, with Illinois rates outpacing CPI increases [26] M&A Strategy and Market Position - **M&A Focus**: Targeting $100 million in annualized revenue through M&A, with a preference for blended asset acquisitions [46][48] - **De Novo Opportunities**: Open to de novo expansions but historically focused on acquisitions due to quicker profitability [43] Clinical and Hospice Business Performance - **Hospice Growth**: Year-to-date organic growth in hospice is in the low teens, outperforming the targeted 5%-7% growth [35] - **Bridge Program Success**: A quarter of hospice referrals are coming from the Bridge program, which connects home health to hospice [37] Future Outlook and Challenges - **2026 Projections**: Anticipation of continued growth in personal care and hospice, with a focus on maintaining margins and managing costs [39][55] - **Technological Integration**: Plans to leverage technology and AI for operational efficiency and cost management [65] Conclusion - Addus HomeCare is strategically positioned to capitalize on growth opportunities in the home care sector, with a focus on operational efficiency, caregiver support, and integration of services. The company is navigating a complex reimbursement landscape while maintaining a commitment to growth through both organic and acquisition strategies.

Core Insights - The company has faced challenges related to Medicaid access rules but has managed to turn these challenges into positives due to its position as a low-cost provider in the personal care service sector [1][2] Company Performance - The company operates primarily in the Medicaid space, which has been a significant factor in its business dynamics this year [1] - Initial challenges related to Medicaid access have not adversely affected the company, and instead, these challenges have evolved into opportunities [2]

Addus HomeCare Conference Call Summary Company Overview - **Company**: Addus HomeCare (NasdaqGS:ADUS) - **Industry**: Home healthcare services, primarily focusing on personal care and hospice services Key Points Industry Dynamics - **Medicaid Dependency**: Approximately 75% of Addus's business is derived from Medicaid, making it sensitive to changes in Medicaid regulations and funding [3][4][5] - **Rate Increases**: Significant rate increases have been observed in key states like Texas and Illinois, which have positively impacted revenue growth [4][5][19] Financial Performance - **Growth Targets**: The company aims for a long-term revenue growth of no less than 10% annually, with 3-5% expected from organic growth and the remainder from acquisitions [5][50] - **Recent Growth**: In the third quarter, personal care services experienced about 6.6% organic growth, with expectations to maintain or exceed the 3-5% range in the upcoming quarters [18][19] Hiring and Labor Market - **Hiring Trends**: Strong hiring trends are noted, with the need for 100-105 hires per business day to support growth, particularly in personal care services [9][10][13] - **Labor Market Conditions**: The labor market is showing positive trends, although challenges remain in specific geographies and skilled roles [13][16] Operational Focus - **Census Growth**: The company is focusing on increasing the census in personal care, which is critical for revenue as they are paid by the hour [10][20] - **Technology Utilization**: The rollout of a caregiver app has improved scheduling and service levels, with over 90% adoption in Illinois [22][28] Hospice Services - **Strong Performance**: Hospice services have seen a 19% increase in discharge growth, driven by improved admissions and patient days [30][31] - **Future Expectations**: Anticipated organic revenue growth for hospice is expected to moderate to mid to upper single digits by mid-2026 [34] Home Health Services - **Complementary Role**: Home health services account for less than 10% of total business but are essential for value-based care integration with personal care and hospice [37][39] - **Regulatory Uncertainty**: The company is navigating uncertainties regarding reimbursement rates, with potential impacts estimated at $3 million if proposed cuts are implemented [56] M&A Strategy - **Acquisition Goals**: The company aims to add over $100 million in acquired revenue annually, focusing on personal care and smaller home health acquisitions [50][58] - **Market Conditions**: Current market conditions are described as slower, with expectations for more opportunities in the upcoming year [51][52] Financial Management - **Expense Management**: The company typically runs SG&A in the 20-21% range, with expectations for improvement as revenue grows [59] - **Capital Deployment**: The primary focus remains on M&A, with share repurchases considered a secondary option [68] Future Outlook - **2026 Projections**: The company is optimistic about growth driven by demographic trends, particularly as the elderly population increases [16][18] - **Legislative Monitoring**: Ongoing monitoring of legislative changes and Medicaid funding is crucial for future planning [41][43] Additional Insights - **Community Engagement**: Local recruitment efforts are emphasized, leveraging community ties to enhance hiring effectiveness [12] - **Technology Adoption**: The app's voluntary use by caregivers is seen as a significant factor in improving operational efficiency and caregiver satisfaction [26][28] This summary encapsulates the key insights and strategic directions discussed during the Addus HomeCare conference call, highlighting the company's focus on growth, operational efficiency, and navigating industry challenges.

Core Viewpoint - Addus HomeCare Corporation is actively engaging with investors by participating in the 2025 UBS Global Healthcare Conference, indicating its commitment to transparency and investor relations [1] Company Participation - The company will present at the 2025 UBS Global Healthcare Conference in Palm Beach Gardens, Florida [1] - Key executives participating in the presentation include Dirk Allison (Chairman and CEO), Heather Dixon (President and COO), and Brian Poff (Executive Vice President and CFO) [1] - The presentation is scheduled for 9:15 a.m. Central Time / 10:15 a.m. Eastern [1]