Aveanna Healthcare Holdings Inc. (AVAH) Hits Fresh High: Is There Still Room to Run?

Company Performance - Aveanna Healthcare (AVAH) has seen a stock increase of 16.9% over the past month, reaching a new 52-week high of $8.45 [1] - Year-to-date, Aveanna's stock has gained 84.3%, significantly outperforming the Zacks Medical sector, which has seen a decline of 0.7%, and the Zacks Medical - Outpatient and Home Healthcare industry, which has returned 10.3% [1] Earnings and Revenue - Aveanna has a strong record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - In the latest earnings report on August 7, 2025, Aveanna reported an EPS of $0.18, surpassing the consensus estimate of $0.04, and beat the revenue estimate by 9.93% [2] - For the current fiscal year, Aveanna is projected to post 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] - For the next fiscal year, expected earnings are $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 20.3X for the current fiscal year, slightly below the peer industry average of 20.7X [7] - On a trailing cash flow basis, Aveanna trades at 51.4X compared to the peer group's average of 18.1X, suggesting it is not in the top echelon from a value perspective [7] Zacks Rank and Style Scores - Aveanna holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, which aligns with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of A [6] Industry Comparison - The Medical - Outpatient and Home Healthcare industry ranks in the bottom 61% of all industries, but Aveanna and its peer, Encompass Health Corporation (EHC), show potential for growth despite the overall industry ranking [11] - EHC has a Zacks Rank of 2 (Buy) and has reported strong earnings, with expected earnings of $5.24 per share on revenues of $5.92 billion for the current fiscal year [10]