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Concerned about aging? Start investing in Addus now!The aging U.S. population is set to double by 2050, increasing the need for caregivers. Addus HomeCare Corporation, based in Frisco, Texas, provides essential personal care, hospice, and home health services. With a market cap of $2.35 billion, Addus reported $1.115 billion in revenue in June 2024, with a 27% profit increase. The company is debt-free and has major shareholders like Blackrock and The Vanguard Group. EPS is forecasted to grow significantly by December 2025. With a growing need for home healthcare services, the company is well-positioned to expand its customer base and market presence. Company Overview Addus HomeCare Corporation and its subsidiaries offer personal care services for the elderly, disabled, and those at risk of hospitalization in the U.S. It operates in three areas: Personal Care, Hospice, and Home Health. The Personal Care segment helps with daily activities like bathing, grooming, and meal preparation. The Hospice segment provides care and support for terminally ill patients and their families. The Home Health segment delivers skilled nursing and therapy services for those recovering from illness or hospitalization. Its clients include government agencies, managed care organizations, insurers, and private individuals. Founded in 1979, Addus is based in Frisco, Texas. Investment Advice by Naranj Capital Buy Addus Homecare Corporation NASDAQ:ADUS ● Buy Range- 120 - 125 ● Target- 150 - 160 ● Potential Return- 25-30% ● Duration- 10 -12 Months Market Capitalization - $ 2.35B Sector - Healthcare (Nursing) Technical Analysis ● The monthly chart indicates a clear upward trend in prices. ● Earlier, the stock peaked near the 129 (128.8 to be precise) level before experiencing a correction, which was subsequently followed by an elongated consolidation period from November 2020 to July 2024. ● Recently, the stock has successfully made a multi-year breakout of the previous resistance zone and has maintained its position above this breakout level. ● We expect this momentum to persist, leading to further price increases in the days ahead. Entry, Exit & Stop-loss ● Entry with Capital allocation strategy (1) consider adding 50% of your desired quantity at the current market price (132 - 133). (2) The second buying opportunity will be in the 120 - 122 range, where you can also add rest 50% of your quantity. ● Target Chart analysis indicates a promising upside potential of 25-30% for this stock from the best buying level, with a target around the 155 to 160. There is also a strong likelihood that the stock could exceed this target. ● Stoploss It is crucial to implement a strict stop-loss below the 115 level, as we anticipate that the stock may encounter challenges if it drops to this point. Revenue Breakdown The company generates its revenue through three primary segments. (1) The personal care sector represents around 74.2% of the overall revenue, totaling $827 million out of $1.11 billion. (2) Meanwhile, hospice services contribute nearly 19.7%, amounting to $219.8 million of the total revenue. (3) The home health segment accounts for approximately 6.1%, which translates to $67.8 million of the overall revenue. Sales & Profit Analysis ● A noticeable rise in revenue has been observed. For the June quarter, revenue reached $1.115 billion, marking an 11.6% increase from $999 million in June 2023 (YoY) and a 2.5% rise from $1.08 billion in March 2024 (QoQ). ● Additionally, profits surged by 27% in the latest quarter, climbing to $68.89 million from $53.83 million in the same quarter last year, and up 5% from $65.67 million in March 2024. ● The profit margin has also improved, increasing from 5.4% to 6.2% year-on-year. ● The basic EPS for the June 2024 quarter is reported at 4.28, marking a significant increase of 27% from 3.37 in the same quarter last year. Peer Companies (1) Privia Health Group (NASDAQ: PRVA) - $ 2.41B NASDAQ:PRVA (2) Amedisys (NASDAQ: AMED) - $ 3.21B NASDAQ:AMED (3) Astrana Health (NASDAQ: ASTH) - $ 2.33B NASDAQ:ASTH Valuation ● P/E vs Fair P/E Ratio ➖ The current PE ratio stands at 34.1x, slightly expensive to the estimated Fair PE of 28.7x. ● P/E Ratio vs Peers ➖ ADUS offers great value with a Price-To-Earnings Ratio of 34.1x, significantly lower than the peer average of 62.7x. ● P/E Ratio vs Industry P/E ➖ ADUS seems to come at a higher price, boasting a Price-To-Earnings Ratio of 34.1x, notably surpassing the US Healthcare industry average of 26.2x. Debt Analysis ➖ ADUS stands proudly as a debt-free entity, a remarkable transformation from five years ago when its debt to equity ratio stood at 12.9%. This significant shift underscores the company's commitment to financial health and stability. Top Shareholders ● Blackrock currently holds a substantial 16% stake in this stock, reflecting an impressive increase of 11.2% since the March quarter. ● Meanwhile, The Vanguard Group has also boosted its investment, raising its stake by 8.5% from the previous quarter, bringing their total holding to 7.74%. Earnings per Share Growth Forecasts Experts forecast that the earnings per share (EPS) could increase from $4.28 to $4.51 by December 2024, and further rise to $5.03 by December 2025. Conclusion With the growing need for home healthcare services, the company is well-positioned to broaden its customer base and enhance its market presence.
NASDAQ:ADUSLong
by NaranjCapital
1
Apple is a great buy once it exceeds 240! The stock experienced an extended period of consolidation, during which it formed several bullish chart patterns, including the Double Bottom and Rounding Bottom. After the price broke above the neckline of the Rounding Bottom, the stock surged to reach an all-time high close to the 237 level. Since then, it has retraced nearly 17%-18%, returned to its support level. Now, with a robust rebound underway, the stock is approaching its resistance zone, and there are strong expectations for a significant breakout. The optimal buying opportunity lies just above the 240 level.
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NASDAQ:AAPLLong
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Burlington Stores is set for significant upward movement. After the market crash in March 2020, the stock price stabilized around the 110 level and began to rise. This upswing drove the price to an impressive high near 350, reaching an all-time peak. During this phase, a Rising Wedge pattern formed, and following a subsequent breakdown, the stock underwent a significant correction, returned to its previous support level. Subsequently, the stock made a strong recovery, climbing to around 250 before encountering resistance. After a notable decline, it found support once more near 115. Another rebound occurred, leading the price to a recent breakthrough above previous resistance levels. It is anticipated that this momentum will persist, leading the stock to achieve new highs in the near future.
NYSE:BURLLong
by NaranjCapital
BKR & ED: Keep an eye for multiyear breakoutBaker Hughes Company The stock was earlier caught in a prolonged consolidation phase, during which it established an Inverted Head & Shoulder pattern. After the breakout, the price experienced a sharp rise but underwent a correction following the formation of a Double Bottom pattern. Subsequently, the stock entered another period of consolidation, gradually trending upwards. During this time, an Ascending Triangle pattern formed, and the price has recently achieved a successful breakout. If it maintains its position above the breakout level, the uptrend is expected to persist. Consolidated Edison In the weekly chart, the price initially moved downwards and created a Falling Wedge pattern. Typically, when this pattern emerges, the price surges higher following the breakout. In this case, the price indeed soared to its record high around the 102 mark post-breakout. However, the stock couldn't sustain the upward momentum and swiftly dropped from the all-time peak. Subsequently, a consolidation phase began, with the price consistently finding support at the 200 EMA. At present, the price is poised for a breakout, potentially leading to an upward rally upon confirmation.
NASDAQ:BKRLong
by NaranjCapital
4
DHI, BX & CG - Charts Suggest a Possible Upward MovementD.R HORTON After analysing the historical stock price, it is clear that the stock has been on an upward trend. Following the market crash in March’20, the price began its upward movement. During this uptrend, the price initially formed a Bullish Pennant pattern, leading to a surge after the breakout. Around the 107 level, the stock faced resistance and started to decline. However, the stock found support near the 60 level and started to climb again. During this consolidation phase, an Inverted Head & Shoulder pattern emerged. After the breakout of this pattern, the stock price consolidated above the breakout zone and recently experienced a new breakout. It is anticipated that the trend will continue upwards and the price will reach new highs. BLACKSTONE After a powerful rally, the stock price experienced a notable correction. It rebounded from the support around the 72 level. Following an upward movement, the stock reached its trendline resistance area and faced rejection. However, instead of dropping, the stock price began consolidating just under the resistance zone. The stock recently achieved a new breakout. With the RSI above 60, it suggests bullish sentiments in the market. CARLYLE GROUP The stock had been on a strong uptrend, hitting an all-time high at the 60 level. However, it later plummeted by around 60% from that peak. Following the drop, the price stabilized at a support level and consolidated for a while. Now, the price seems poised for another breakout, potentially leading to a new rally. With the RSI slightly above 60, it suggests bullish sentiments in the market.
NYSE:DHILong
by NaranjCapital
Watch out FDX, ZION and HLNE - Prices are ready to soar!FedEx The stock price has been following a downward trend within a parallel channel. After reaching a base near the 145 level, the price started to move in an upward direction. With the support of a trendline, the stock managed to break through its trendline resistance with strong volume. As long as the price remained below the 50 EMA, it faced resistance from the 50 EMA. However, once it broke above the EMA, it found support from the 50 EMA multiple times. The current RSI is above 60, indicating the strength of the buyers. The MACD line recently crossed over the signal line from below, signalling a bullish sentiment. Zions Bancorporation After the Symmetrical Triangle pattern breakout, the price surged and reached a high near the 75 level. However, the stock failed to sustain the uptrend and dropped to its support zone. A Head & Shoulder pattern emerged, signalling bearish sentiment. When the neckline was breached, the price significantly dropped to its previous support level near 22. The stock then moved up with higher trading volume. It later formed an Ascending pattern and recently experienced a sharp breakout. The current RSI is above 60 and trending upwards, indicating buyer strength. Hamilton Lane Before, the stock price made an Ascending triangle pattern and after breaking out, the price consolidated before going up. The stock price encountered a sharp rejection around the 115 level and fell significantly. Following a substantial consolidation, the stock formed a Cup & Handle pattern. When this pattern appears on the chart, it typically signals a continuation of the trend. After the breakout, the stock price is on the rise. The current RSI is above 60 and the RSI line is also trending upwards, demonstrating the strength of the buyers.
NYSE:FDXLong
by NaranjCapital
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NSE:UPL
by PivotMinati
1
Comfort Systems USA (FIX) Analysis Benefiting from Macro Trends: Comfort Systems USA NYSE:FIX , specializing in HVAC services, stands to benefit significantly from key macroeconomic trends. The post-pandemic surge in nonresidential construction, especially in manufacturing, driven by initiatives like the CHIPS and Science Act of 2022, creates substantial opportunities for the company. Strategic Positioning: The CHIPS Act and supply chain challenges emphasize local sourcing, particularly for semiconductors, positioning Comfort Systems favorably amid this strategic shift. Geopolitical and demographic trends, coupled with advancements in industrial software and automation, further support reshoring and domestic technological investments, enhancing Comfort Systems' growth prospects. Investment Outlook: Bullish Outlook: We are bullish on FIX above the $275.00-$277.00 range. Upside Potential: With an upside target set at $445.00-$450.00, investors should consider Comfort Systems' strategic alignment with macroeconomic trends and its strong position in HVAC services as key drivers for potential stock appreciation. 📊🔧 Stay informed about Comfort Systems USA for promising investment opportunities! #FIX #HVACServices 🌐🛠️
NYSE:FIXLong
by Richtv_official
PI Industries: a Power Packed Performer trying to form a bottom.PI Industries Ltd. is an Agri-sciences company with strong presence in both domestic and export market. The company has commercialized 4 new molecules during this year, which included 2 new Electronic Chemicals. PI Industries Ltd CMP is 3484.35. The Negative aspects of the company are High Valuation (P.E. = 35.3), MFs are decreasing stake. The positive aspects of the company are No debt, zero promoter pledge, FIIs are increasing stake, improving annual net profit, Improving cash from operations annual. Entry can be taken after closing above 3515. Targets in the stock will be 3582 and 3646. The long-term target in the stock will be 3741 and 3805. Stop loss in the stock should be maintained at Closing below 3224. The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:PIINDLong
by Happy_Candles_Investment