Core Insights - The Zacks Medical - Outpatient and Home Healthcare industry is experiencing a significant shift towards digital healthcare, driven by rising demand for telemedicine and AI-powered services, particularly due to an aging global population and increasing healthcare costs [1][4][9]. Industry Overview - The industry includes companies providing outpatient care and home healthcare services, utilizing advanced medical technologies for diagnosis and treatment. The sector has shown steady growth post-pandemic, supported by innovation and the shift towards value-based care models [3][6]. - The global home healthcare market was valued at $390.24 billion in 2023, with an expected CAGR of approximately 7.9% from 2024 to 2030 [1]. Major Trends - **Aging Population**: The growing elderly population is a primary driver for home healthcare services, increasing the demand for chronic disease management and rehabilitation [4]. - **Cost Effectiveness**: Outpatient clinics offer cost-effective care, supported by financial incentives from health plans and government programs [5]. - **AI Integration**: AI is enhancing healthcare delivery, with outpatient companies utilizing automated systems for better patient outcomes and efficiency [7]. - **Technological Advancements**: Virtual assistants and chatbots are becoming integral in patient care, aiding in appointment scheduling and medication compliance [8]. Challenges - **Staffing Shortages**: The U.S. healthcare sector faces significant staffing shortages, particularly among home health aides, exacerbated by high burnout rates [10]. - **Tariff Impact**: New U.S. tariffs have increased costs for imported medical supplies, straining home healthcare providers and leading to operational challenges [11]. Market Performance - The industry has outperformed its sector but underperformed compared to the S&P 500, gaining 6.8% over the past year versus the S&P 500's 12.1% gain [14]. - The industry is currently trading at a forward P/E of 19.8X, lower than the S&P 500's 22.3X [18]. Notable Companies - **Quest Diagnostics**: Expected revenue growth of 9.2% for 2025, with a strong return on equity (ROE) of 15.1% [22][23]. - **Encompass Health**: Anticipated revenue growth of 9.5% for 2025, with an ROE of 17.6% [25][26]. - **The Pennant Group**: Projected revenue growth of 23.3% for 2025, with an ROE of 10.7% [29][30]. - **DaVita**: Expected revenue growth of 5.2% for 2025, with a notably high ROE of 176.1% [33][34].

Company Overview - Encompass Health (EHC) is currently outperforming the Medical sector, gaining approximately 30.7% year-to-date, while the sector has lost an average of 4.2% [4] - The company holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Industry Performance - Encompass Health is part of the Medical - Outpatient and Home Healthcare industry, which consists of 17 individual stocks and is currently ranked 37 in the Zacks Industry Rank [6] - The average gain for stocks in this industry is 4.8% year-to-date, highlighting EHC's superior performance within its specific industry [6] Comparative Analysis - Another stock in the Medical sector that has shown strong performance is EUROFINS SCIENT (ERFSF), which is up 32.7% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Medical Services industry, to which EUROFINS SCIENT belongs, is ranked 67 and has experienced a decline of 0.6% year-to-date, contrasting with EHC's performance [6]

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has atai Life Sciences N.V. (ATAI) been one of those stocks this year? 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. atai Life Sciences N.V. is a member of our Medical group, which includes 997 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the st ...

Investors interested in Medical - Outpatient and Home Healthcare stocks are likely familiar with Elanco Animal Health Incorporated (ELAN) and U.S. Physical Therapy (USPH) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets c ...

Group 1 - Encompass Health (EHC) is a strong performer in the Medical sector, with a year-to-date return of approximately 30.3%, significantly outperforming the sector average loss of 3.5% [4] - The Zacks Rank for Encompass Health is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with earnings estimates having increased by 4.4% in the past quarter [3][4] - The Medical sector consists of 998 individual stocks and currently holds a Zacks Sector Rank of 6, reflecting the average performance of stocks within this sector [2] Group 2 - Encompass Health operates within the Medical - Outpatient and Home Healthcare industry, which includes 17 stocks and has a Zacks Industry Rank of 39, with an average gain of 4.9% this year [6] - Another notable stock in the Medical sector is Elanco Animal Health Incorporated (ELAN), which has achieved a 15% increase year-to-date and has a Zacks Rank of 2 (Buy) [5][6] - Both Encompass Health and Elanco Animal Health are highlighted as stocks to watch for continued solid performance in the Medical sector [7]

Company Performance - atai Life Sciences N.V. has returned 81.2% year-to-date, significantly outperforming the average loss of 3.4% in the Medical sector [4] - The Zacks Consensus Estimate for atai Life Sciences N.V.'s full-year earnings has increased by 0.8% over the past three months, indicating improved analyst sentiment [4] - atai Life Sciences N.V. currently holds a Zacks Rank of 2 (Buy), suggesting a favorable earnings outlook [3] Industry Comparison - atai Life Sciences N.V. is part of the Medical - Outpatient and Home Healthcare industry, which has gained approximately 5.1% year-to-date, indicating that atai is performing better than its industry peers [6] - In contrast, Novartis, another outperforming stock in the Medical sector, has increased by 21.3% year-to-date and belongs to the Large Cap Pharmaceuticals industry, which has seen a decline of 1.1% [5][6] - The Medical sector ranks 5 in the Zacks Sector Rank, which includes 16 different groups ranked by the average Zacks Rank of individual companies [2]

Company Overview - Elanco Animal Health Incorporated (ELAN) is currently experiencing significant activity in the options market, particularly with the Jan 16, 2026 $3.00 Call option showing high implied volatility, indicating potential for a major price movement [1] Market Sentiment - The high implied volatility suggests that investors are anticipating a significant price change for Elanco Animal Health shares, which could be driven by an upcoming event [2][4] - Analysts have a mixed outlook on Elanco, with the company holding a Zacks Rank 3 (Hold) in the Medical - Outpatient and Home Healthcare industry, which is in the top 26% of the Zacks Industry Rank [3] Earnings Estimates - Over the past 60 days, there have been no increases in earnings estimates for the current quarter, while six analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from earnings of 25 cents per share to 20 cents [3]

Company Overview - Atai Life Sciences N.V. (ATAI) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Price Performance - ATAI shares have increased by 18.71% over the past week, significantly outperforming the Zacks Medical - Outpatient and Home Healthcare industry, which rose by 1.81% during the same period [6] - Over the past month, ATAI's stock price has risen by 32.03%, compared to the industry's 2.96% [6] - In the last quarter, ATAI shares increased by 22.42%, and over the past year, they gained 23.93%, while the S&P 500 experienced a decline of -2.55% and a modest increase of 11.45%, respectively [7] Trading Volume - The average 20-day trading volume for ATAI is 1,976,396 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for ATAI have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.75 to -$0.60 [10] - For the next fiscal year, two estimates have moved upwards, while one has been revised downwards [10] Conclusion - Given the strong price performance, positive earnings outlook, and high Momentum Style Score, ATAI is recommended as a solid momentum pick for investors [12]

Company Overview - Amedisys (AMED) is part of the Medical group, which consists of 997 companies and is currently ranked 5 within the Zacks Sector Rank [2] - Amedisys operates in the Medical - Outpatient and Home Healthcare industry, which includes 17 individual stocks and is ranked 73 in the Zacks Industry Rank [5] Performance Analysis - Year-to-date, Amedisys has returned 3.1%, outperforming the average loss of 6.8% in the Medical sector [4] - The Zacks Consensus Estimate for Amedisys's full-year earnings has increased by 1.5% over the past quarter, indicating improved analyst sentiment [3] - In comparison, BrightSpring Health Services, Inc. has returned 34.6% year-to-date and has a consensus EPS estimate increase of 23.8% over the past three months [4][5] Industry Context - The Medical - Outpatient and Home Healthcare industry has seen an average gain of 2.6% this year, with Amedisys performing better than this average [5] - The broader Medical Services industry, which includes BrightSpring Health Services, has declined by 5.5% this year and is ranked 65 [6]

Group 1 - atai Life Sciences N.V. (ATAI) is outperforming its peers in the Medical sector with a year-to-date return of approximately 43.6%, while the average return for Medical companies is -6.3% [4] - The Zacks Rank for atai Life Sciences N.V. is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for ATAI's full-year earnings has increased by 0.8% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - atai Life Sciences N.V. is part of the Medical - Outpatient and Home Healthcare industry, which ranks 84 in the Zacks Industry Rank, and this industry has an average year-to-date return of 3.7% [6] - Cardinal Health (CAH), another stock in the Medical sector, has a year-to-date return of 29.6% and also holds a Zacks Rank of 2 (Buy) [5] - The Medical - Dental Supplies industry, to which Cardinal Health belongs, is currently ranked 42 and has experienced a year-to-date decline of -1% [7]