The needs of "baby boomers" are having an economic impact on the health care industry. Specifically on the Outpatient and Home Care Industry is seeing revitalization as seniors seek solutions to the challenges they face.
Millions of Americans, commonly identified by their number and youth, are now facing the challenges of age. Yes, the “baby boomers” are far from the babies they once were, and their needs are having an economic impact on the health care industry.
Specifically, the Outpatient and Home Care Industry is seeing revitalization as many seniors seek solutions to help with the challenges they face. These businesses have recently seen 33 positive earnings estimate revisions compared to 13 negative revisions, averaging a positive earnings per share surprise of +35%.
Adding to the sheer volume of elderly is the rising age to which the population is living. With life expectancy topping 80 years and climbing, the amount of time individuals may be in need of these services is also a factor in the sector’s growth.
Both of the following service providers have been upgraded this week to a Strong Buy. An upgrade in rank from a Buy or Hold to a Strong Buy demonstrates that a given stock may be gaining value following future positive earnings estimate revisions. By combining specific stock performance with perspective related to the industry as a whole, these movements may provide investors with additional insight into their portfolio. Each of these stocks also hold a long-term Outperform rating.
And these companies know — taking care of others means taking care of business.
Addus Home Care (ADUS)
The company was upgraded to a Strong Buy last week from a Buy. Its next expected earnings report is on Nov. 7, 2013.
Addus Home Care is a comprehensive provider of a broad range of social and medical services in the home. The company's services include personal care and assistance with activities of daily living, skilled nursing and rehabilitative therapies, and adult day care. Its consumers are individuals with special needs who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled.
Adding to its outlook are existing relationships with federal, state and local governmental agencies, the Veterans Health Administration, commercial insurers and private individuals.
Addus’ most recent quarterly earnings surprise was +15%.
LCAV is a Strong Buy, moved up from a Buy just last week. This company reports quarterly earnings on Oct. 29, 2013.
LCA-Vision Inc., a leading provider of laser vision correction services, owns and operates 58 LasikPlus vision centers in the United States. While declines in annual procedures numbers are important to watch, cost cutting measures and increases in efficiency have increased profits per procedure, boosting earnings.
LCAV’s most recent earnings surprise was strong +118%.
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