Wall Street expects a year-over-year increase in earnings on higher revenues when BrightSpring Health Services, Inc. (BTSG) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rel ...

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is BrightSpring Health Services, Inc. (BTSG) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.BrightSpring Health Services, Inc. is one of 986 companies in the Medical group. The Medical group currently sits at #8 within the Zacks Sector Rank. The Zacks ...

Core Viewpoint - BrightSpring Health Services, Inc. (BTSG) has faced significant selling pressure, resulting in a 10.4% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) for BTSG is currently at 23.81, indicating that the stock may be oversold and could experience a price rebound as selling pressure exhausts [5] - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3] Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for BTSG, leading to a 3.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7] - BTSG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, suggesting a potential turnaround [8]

Market Overview - Volatility in the U.S. stock market is expected to continue due to uncertainty regarding interest rate cuts, new tariffs, and geopolitical tensions, complicating portfolio management for individual investors [1] Investment Strategy - Selecting inappropriate stocks can negatively affect returns, undermining investment goals; adhering to broker advice is suggested as brokers possess extensive knowledge of stocks and the broader economy [2] Recommended Stocks - Broker-friendly stocks identified for potential healthy returns include BrightSpring Health Services (BTSG), GXO Logistics (GXO), BrightView Holdings (BV), Bloomin' Brands (BLMN), and Archer Daniels Midland Company (ADM) [3][9] Screening Methodology - A screening strategy was developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks, incorporating the price/sales ratio as a valuation metric [4] Screening Criteria - The screening criteria include: - Top 75 companies with net upgrades in broker ratings over the last four weeks [5] - Top 10 stocks with positive earnings estimate revisions for the upcoming quarter [5] - Bottom 10% of stocks based on price/sales ratio [5] - Stocks priced above $5 to attract investor interest [5] - Average daily volume exceeding 100,000 shares over the last 20 trading days [6] - Top 3000 stocks by market capitalization [6] Company Highlights - **BrightSpring Health Services (BTSG)**: Expected earnings growth rate of 55.4% for 2025, with a projected revenue increase of 9.1% over 2024; currently holds a Zacks Rank 2 (Buy) [7][9] - **GXO Logistics (GXO)**: Benefits from increased e-commerce and cost-cutting efforts; projected revenue growth of 9.9% for 2025; currently holds a Zacks Rank 3 (Hold) [10][11] - **BrightView Holdings (BV)**: Largest commercial landscaper in the U.S., with expected earnings growth of 10.5% for 2025; currently holds a Zacks Rank 3 [12][13] - **Bloomin' Brands (BLMN)**: Performance driven by off-premise channels and technology upgrades; Zacks Consensus Estimate for 2025 earnings revised upward by 1.7% [14][15] - **Archer Daniels Midland Company (ADM)**: Focus on flexitarian diets and sustainable materials; currently holds a Zacks Rank 3 [16][17]

Company Overview - BrightSpring Health Services, Inc. provides home- and community-based pharmacy and provider health solutions for complex populations requiring specialized and chronic care [3] - The company operates across all 50 states, serving over 450,000 customers, clients, and patients daily [3] - BrightSpring has shown strong quality metrics across its service lines, improving the quality of life for high-need individuals while reducing overall healthcare costs [3] Financial Results Announcement - BrightSpring plans to release its second quarter 2025 financial results on August 1, 2025, prior to its earnings conference call [1] - The earnings conference call is scheduled for 8:30 a.m. ET on the same day [1] Conference Call Participation - Interested participants must register before the conference call starts at 8:30 a.m. ET [2] - A live and archived webcast of the call will be available on the company's investor relations website [2]

Core Insights - The healthcare industry is transitioning towards decentralized, patient-centric care models, with home infusion and specialty pharmacy services emerging as key growth areas [1] - BrightSpring Health Services (BTSG) and Option Care Health (OPCH) are two notable players capitalizing on the demand for cost-effective, high-quality treatment options [1] BrightSpring Health Services (BTSG) - BTSG achieved a remarkable 33% year-over-year growth in its infusion and specialty pharmacy segment in Q1 2025, driven by a 20% increase in prescription volumes and the launch of 127 limited distribution drugs [2][6] - The company reported operational excellence with a dispense accuracy of 99.999%, 95% infusion satisfaction, and over 90% home health satisfaction [7] - Adjusted EBITDA improved by 28% in Q1, with Pharmacy Solutions contributing 31% growth, supported by rising script volumes and operational initiatives [8] - Management raised the 2025 revenue guidance to between $12.0 billion and $12.5 billion, with adjusted EBITDA projected to be between $570 million and $585 million, indicating a potential growth of up to 27% [9][10] - The Zacks Consensus Estimate suggests an 82.1% improvement in BTSG's 2025 earnings per share (EPS) compared to 2024 [14] Option Care Health (OPCH) - OPCH reported a 16% year-over-year revenue growth in Q1, with mid-teens growth in acute therapies and high-teens growth in chronic, rare, and orphan therapies [11] - The company is leveraging AI and robotic process automation (RPA) to enhance operational efficiency and margin expansion [12] - Adjusted EBITDA improved by 13.7% year-over-year, leading to an 8.4% EBITDA margin, while the company repurchased $100 million in stock in Q1 [13] - OPCH's full-year 2025 revenue guidance is set between $5.4 billion and $5.6 billion, with EBITDA projected at $455 million to $470 million [13] - The Zacks Consensus Estimate indicates a 36.6% improvement in OPCH's 2025 EPS over the previous fiscal year [16] Comparative Analysis - BTSG is trading at a forward price-to-sales ratio of 0.31X, above its one-year median of 0.25X, while OPCH is at 0.90X, below its 5-year median of 0.97X, indicating that BTSG is more attractively valued relative to its growth [17] - Recommendations suggest buying BTSG due to its faster revenue and EBITDA growth, while holding OPCH as it makes strategic advancements [18]

Core Insights - BrightSpring Health Services, Inc. (BTSG) has raised its full-year 2025 financial outlook, expecting total revenues between $12.0-$12.5 billion, up from $11.6-$12.1 billion, indicating year-over-year growth of 19.1-24.1% [1][7] - Adjusted EBITDA is projected to be in the range of $570-$585 million, an increase from $545-$560 million, reflecting a robust growth of 23.9-27.2% [1][7] - The Pharmacy Solutions segment is anticipated to generate revenues of $10.55-$11.0 billion, while the Provider Services segment is forecasted to bring in $1.45-$1.50 billion [1] Financial Performance - The revenue growth in the Pharmacy Solutions segment is driven by a 33% year-over-year increase in revenues and a 20% rise in prescription volume, particularly in specialty and infusion services [2] - The Provider care segment is experiencing double-digit growth, supported by quality-driven outcomes and broader payer contracts [2] - BrightSpring is investing in advanced technologies to enhance operational efficiency across both pharmacy and provider segments [2] Margin Expansion - Margin expansion initiatives, including procurement improvements and operational efficiencies, are expected to support margin gains starting in the second quarter of 2025 [3] - Disciplined cost management through lean initiatives and optimized purchasing is enhancing gross profit and EBITDA margins [3] - The company's strategic focus on home and community-based care is driving both volume and profitability [3] Competitor Performance - Cardinal Health, Inc. (CAH) has raised its full-year fiscal 2025 guidance, anticipating adjusted earnings per share between $8.05 and $8.15, up from $7.85-$8.00, benefiting from strong specialty and pharmaceutical sales [4] - Addus HomeCare Corporation (ADUS) has reaffirmed its long-term goal of 10% annual revenue growth, with adjusted EBITDA margin expected to remain above 12% for the full year [5] Stock Performance and Valuation - BrightSpring's shares have gained 114.8% over the past year, contrasting with a 17.8% decline in the industry and a 9.8% rise in the S&P 500 [6] - The company trades at a 12-month forward price-to-earnings ratio of 20.77, compared to the industry's 14.24 [8] - The Zacks Consensus Estimate for BTSG's earnings has increased over the past 60 days, indicating positive market sentiment [10]

Core Insights - BrightSpring Health Services (BTSG) reported strong financial results for Q1 2025, with total revenues increasing by 26% year over year to $2.9 billion and adjusted EBITDA rising by 28% to $131 million, despite facing operational and macroeconomic challenges [3][8] - The company raised its full-year guidance, expecting total revenues between $12 billion and $12.5 billion, which represents a year-over-year growth of 19.1% to 24.1%, and adjusted EBITDA guidance increased to $570 million to $585 million, marking a growth of 23.9% to 27.2% [4][8] Financial Performance - Total revenues for Q1 2025 were $2.9 billion, with Pharmacy Solutions and Provider Services segments growing by 28% and 12% respectively [3][8] - Adjusted EBITDA for the same period was $131 million, supported by operational efficiency initiatives and volume leverage [3][8] Operational Challenges - The company faced a negative impact of $3.7 million on EBITDA due to fewer business days in Q1 2025 compared to Q1 2024 [2] - 10% of the company's revenues are derived from Medicaid, which poses reimbursement risks due to potential federal or state-level cuts [2] - The gross margin was modestly impacted by a revenue mix shift towards the lower-margin specialty pharmacy segment [2] Market Position and Valuation - BrightSpring's shares have gained 114.8% over the past year, significantly outperforming the industry, which saw a decline of 16.2% [7] - The company currently trades at a 12-month forward price-to-earnings ratio of 20.36, compared to the industry's 14.25 [9] Peer Comparison - Option Care Health (OPCH) and Amedisys (AMED) also reported strong financial performances in Q1 2025, with OPCH seeing revenue and margin growth driven by infusion therapy demand, and AMED experiencing consistent growth in hospice and home health services [5][6]

Core Insights - BrightSpring Health Services' specialty pharmacy, Onco360®, has been selected as the national pharmacy partner for newly approved therapies targeting advanced cancers and rare genetic disorders [1][3]. Company Overview - BrightSpring Health Services offers integrated home- and community-based pharmacy and health solutions for complex populations, serving over 400,000 customers daily across all 50 states [4]. - Onco360® is a leading independent oncology pharmacy founded in 2003, focusing on the specialized needs of oncologists, patients, and healthcare providers [5]. New Therapy Partnerships - Onco360® will provide access, education, data, and expert support for innovative treatments for advanced ovarian and lung cancers, as well as neurofibromatosis type 1 [2][3]. - The therapies include GOMEKLI™ for neurofibromatosis type 1, AVMAPKI™ FAKZYNJA™ CO-PACK for KRAS-mutated recurrent low-grade serous ovarian cancer, and IBTROZI™ for ROS1-positive non-small cell lung cancer [6].

Industry Overview - The Medical Services sector is undergoing significant transformation driven by technological advancements, value-based care adoption, and a focus on patient-centric solutions and precision medicine [1] - The industry includes various service providers such as pharmacy benefit managers, contract research organizations, and healthcare workforce solution providers, moving from volume-based to value-based care [3] Market Trends - The global healthcare analytics market was valued at $53.1 billion in 2024, with a projected CAGR of 21.4% from 2025 to 2034, benefiting various stakeholders [2] - The digital health market is expected to grow at a CAGR of 9.2% from 2024 to 2028, while the big data in healthcare market is estimated to increase from $78 billion in 2024 to $540 billion by 2035, representing a CAGR of 19.20% [4] - The demand for skilled nursing professionals is surging, with a projected shortfall of over 100,000 healthcare workers by 2028, including 73,000 nursing assistants [2] Staffing Challenges - The healthcare staffing shortage is exacerbated by the aging population and the exit of frontline workers due to the COVID-19 pandemic, with WHO projecting a shortfall of 9.9 million healthcare professionals by 2030 [5] - Hospitals have seen a 15.6% increase in labor expenses per adjusted discharge compared to pre-pandemic levels due to rising labor costs [5] Nursing Care Market - The role of nurses is evolving with advancements in medical technologies, and the employment of nurse anesthetists, nurse midwives, and nurse practitioners is projected to grow 40% from 2023 to 2033 [6] Industry Performance - The Medical Services Industry has underperformed compared to its sector and the S&P 500, with a collective loss of 13.4% over the past year [10] - The industry is currently trading at a forward P/E of 14.6X, lower than the S&P 500's 21.9X and the sector's 19.3X [13] Investment Opportunities - GeneDx, CVS Health, and BrightSpring are identified as stocks with strong earnings outlooks, with GeneDx expected to have a 336% earnings growth rate in 2025 [19][20][22][26] - CVS Health is focusing on advanced technological capabilities and has projected earnings growth rates of 12.6% and 14.3% for 2025 and 2026, respectively [22][23] - BrightSpring is improving care quality and is expected to see an 82.1% earnings growth rate in 2025 [26][27]