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Aveanna Healthcare Holdings Inc. (AVAH) Hit a 52 Week High, Can the Run Continue?
Aveanna HealthcareAveanna Healthcare(US:AVAH) ZACKSยท2025-08-25 14:16

Company Performance - Aveanna Healthcare (AVAH) has seen a significant stock increase of 88.6% over the past month, reaching a new 52-week high of $7.69 [1] - Year-to-date, Aveanna's stock has gained 63.5%, outperforming the Zacks Medical sector, which declined by 1.4%, and the Zacks Medical - Outpatient and Home Healthcare industry, which returned 9% [1] Earnings and Revenue - Aveanna has consistently exceeded earnings expectations, reporting an EPS of $0.18 against a consensus estimate of $0.04 in its last earnings report on August 7, 2025, and beating revenue estimates by 9.93% [2] - For the current fiscal year, Aveanna is projected to achieve earnings of $0.41 per share on revenues of $2.31 billion, reflecting a 600% increase in EPS and a 14.24% increase in revenues [3] - The next fiscal year forecasts earnings of $0.48 per share on revenues of $2.43 billion, indicating year-over-year changes of 15.48% and 5.07%, respectively [3] Valuation Metrics - Aveanna's current valuation metrics show a Price-to-Earnings (P/E) ratio of 18X for the current fiscal year, below the peer industry average of 20.3X, while its trailing cash flow basis P/E is 45.6X compared to the peer group's average of 17.9X [6] - The stock has a Value Score of B, with Growth and Momentum Scores both rated A, resulting in a combined VGM Score of A [6] Zacks Rank - Aveanna holds a Zacks Rank of 1 (Strong Buy), driven by rising earnings estimates, making it a favorable choice for investors [7] - The recommendation is to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which Aveanna meets [7] Industry Comparison - The Medical - Outpatient and Home Healthcare industry is performing well, ranking in the top 18% of all industries, providing favorable conditions for both Aveanna and its peer, Encompass Health Corporation (EHC) [10] - EHC has a Zacks Rank of 2 (Buy) and has also shown strong earnings performance, beating consensus estimates by 16.67% [9]