Core Viewpoint - Investors are evaluating Astrana Health, Inc. (ASTH) and U.S. Physical Therapy (USPH) to determine which stock offers better value opportunities in the Medical - Outpatient and Home Healthcare sector [1] Valuation Metrics - ASTH has a Zacks Rank of 1 (Strong Buy), while USPH has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for ASTH compared to USPH [3] - ASTH's forward P/E ratio is 23.09, significantly lower than USPH's forward P/E of 31.71, suggesting that ASTH may be undervalued [5] - The PEG ratio for ASTH is 0.78, while USPH's PEG ratio is 4.15, indicating that ASTH has a more favorable earnings growth outlook relative to its price [5] - ASTH's P/B ratio is 2.28, compared to USPH's P/B of 2.5, further supporting the argument that ASTH is a better value option [6] - ASTH has a Value grade of B, while USPH has a Value grade of C, reinforcing the conclusion that ASTH is the preferred choice for value investors [6]

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]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Aveanna Healthcare (AVAH) Analysis - Aveanna Healthcare currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, AVAH shares increased by 15.31%, significantly outperforming the Zacks Medical - Outpatient and Home Healthcare industry, which rose by 1.01% [6] - In a longer timeframe, AVAH shares have risen by 33.4% over the past quarter and 42.27% over the past year, while the S&P 500 only increased by 7.87% and 15.7%, respectively [7] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for AVAH is 1,672,211 shares, indicating a bullish sign with rising stock prices [8] - Over the past two months, three earnings estimates for AVAH have increased, raising the consensus estimate from $0.22 to $0.35 [10] - The positive earnings revisions suggest a promising outlook for AVAH, reinforcing its status as a 1 (Strong Buy) stock with a Momentum Score of A [12]

Aveanna Healthcare (AVAH) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 49.5%. For Aveanna Healthcare, the consensus EPS estimate for the current year has increased 87% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Akero Therapeutics, Inc. belongs to the Medical - Biomedical and Genetics industry, a group that includes 489 individual companies and currently sit ...

Core Viewpoint - Aveanna Healthcare (AVAH) has experienced significant stock performance, with a 37.4% increase over the past month and a new 52-week high of $6.2, outperforming the Zacks Medical sector and the Zacks Medical - Outpatient and Home Healthcare industry [1][2]. Performance Metrics - Aveanna has consistently exceeded earnings expectations, reporting an EPS of $0.18 against a consensus estimate of $0.04 in its last earnings report, and beating revenue estimates by 9.93% [2]. - Year-to-date, Aveanna's stock has risen by 27.1%, contrasting with a decline of 8.1% in the Zacks Medical sector [1]. Valuation Metrics - The stock currently trades at 26.4 times the current fiscal year EPS estimates, which is above the peer industry average of 19.6 times [5]. - On a trailing cash flow basis, Aveanna trades at 35.4 times, compared to the peer group's average of 15.8 times, indicating a premium valuation [5]. Style Scores - Aveanna holds a Value Score of B, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of B [5]. - The Zacks Rank for Aveanna is 1 (Strong Buy), driven by rising earnings estimates, suggesting potential for further gains [6].

Group 1 - Astrana Health, Inc. reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.4 per share a year ago, representing an earnings surprise of -47.22% [1] - The company posted revenues of $654.81 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.31%, and up from $486.27 million year-over-year [2] - Astrana Health, Inc. shares have lost about 30.8% since the beginning of the year, while the S&P 500 has gained 7.9% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.58 on revenues of $946.77 million, and for the current fiscal year, it is $1.59 on revenues of $3.17 billion [7] - The Zacks Industry Rank for Medical - Outpatient and Home Healthcare is currently in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Group 1: Earnings Performance - Elanco Animal Health reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.30 per share a year ago, representing an earnings surprise of +30.00% [1] - The company posted revenues of $1.24 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.67% and up from $1.18 billion year-over-year [2] - Over the last four quarters, Elanco has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Elanco Animal Health shares have increased approximately 15.2% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.13 on revenues of $1.08 billion, and for the current fiscal year, it is $0.84 on revenues of $4.55 billion [7] Group 3: Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Elanco belongs, is currently in the top 27% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - The Pennant Group, Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.24 per share a year ago, resulting in an earnings surprise of +3.85% [1] - The company achieved revenues of $219.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.16%, and up from $168.74 million year-over-year [2] - The Pennant Group has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Group 2 - The stock has underperformed the market, losing about 16.3% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $215.51 million, and for the current fiscal year, it is $1.11 on revenues of $856.91 million [7] Group 3 - The Medical - Outpatient and Home Healthcare industry, to which The Pennant Group belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for The Pennant Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

分组1 - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing an increase from $0.73 per share a year ago, resulting in an earnings surprise of +14.08% [1] - The company achieved revenues of $197.34 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.78%, and up from $167.19 million year-over-year [2] - U.S. Physical Therapy has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing about 18.8% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $192.33 million, and for the current fiscal year, it is $2.49 on revenues of $762.72 million [7] - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - DaVita Inc. (DVA) is set to report its second-quarter 2025 results on August 5, with previous earnings per share (EPS) of $2.00 exceeding estimates by 14.3% [1] - The company has shown a mixed performance over the last four quarters, beating estimates three times and missing once, with an average earnings surprise of 3.6% [1] Factors Influencing Performance - DaVita's performance in the first quarter of 2025 was bolstered by strong sales of phosphate binders, which are essential for dialysis patients [2] - The transition of phosphate binders from Medicare Part D to the dialysis benefit by the Centers for Medicare & Medicaid Services (CMS) is expected to continue benefiting DaVita's revenues [2] - However, the company is facing challenges with new patient starts due to supply constraints in peritoneal dialysis solutions, which may negatively impact volume growth in 2025 [3][16] Financial Estimates - The Zacks Consensus Estimate for DaVita's second-quarter 2025 revenues is $3.30 billion, reflecting a 3.5% increase from the previous year [4] - The consensus estimate for EPS is $2.70, indicating a 4.3% rise from the prior-year period [4] Earnings Prediction - DaVita is predicted to beat earnings estimates, supported by a positive Earnings ESP of +6.67% and a Zacks Rank of 3 (Hold) [5][6] Share Price Performance - Over the past three months, DaVita's shares have increased by 1.1%, outperforming the Medical - Outpatient and Home Healthcare sector's decline of 2.8% [7] - The company's shares have also outperformed the Zacks Medical sector's decrease of 1.6%, but lagged behind the S&P 500's growth of 13.9% [7] Valuation Metrics - DaVita's forward 12-month price-to-sales (P/S) ratio is 0.8X, significantly lower than the industry average of 2.6X [11] - The company is trading at a discount compared to peers like Encompass Health and Elanco Animal Health, which have P/S ratios of 1.8X and 1.5X, respectively [12] Long-Term Investment Outlook - Management anticipates variability in drug mix, particularly with iron-based binders, which could impact operating income from phosphate binders, projected to be at the upper end of $0 to $50 million for the year [15] - Despite challenges, DaVita's core business strength and financial stability present a favorable long-term investment opportunity [17][18]