Brookdale (BKD) Stock Trades Up, Here Is Why

What Happened?

Shares of senior living provider Brookdale Senior Living jumped 7.9% in the afternoon session after RBC Capital raised its price target on the stock in response to the company's strong 2026 financial guidance. 

The investment bank increased its target to $17.00 from $13.00 and maintained its Outperform rating. This change occurred before Brookdale's scheduled Investor Day. The analyst's confidence was boosted by the company's upbeat forecast, particularly a strong revenue outlook that suggested new management's pricing plans were effective. RBC Capital also named Brookdale a top pick for 2026. The positive guidance followed preliminary 2025 results where key metrics like revenue and adjusted earnings were expected to be above the midpoint of the company's previous forecasts.

What Is The Market Telling Us

Brookdale’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock gained 9.7% on the news that the company reported strong occupancy growth for September 2025. The senior living operator announced its consolidated weighted average occupancy for September reached 82.5%, an increase of 330 basis points, or 3.3%, compared to the same month in the previous year. This figure also represented a 70 basis point improvement from August. For the third quarter, the company's weighted average occupancy was 81.8%, which was 290 basis points higher than the year-ago period. The rising occupancy rates suggested increased demand for Brookdale's services, signaling a positive operational trend for the company.

Brookdale is up 29.8% since the beginning of the year, and at $14.07 per share, has set a new 52-week high. Investors who bought $1,000 worth of Brookdale’s shares 5 years ago would now be looking at an investment worth $2,849.

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at AdaptHealth and its peers.

The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers.Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.

The 7 senior health, home health & hospice stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.7%.

Luckily, senior health, home health & hospice stocks have performed well with share prices up 12% on average since the latest earnings results.

AdaptHealth

With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.

AdaptHealth reported revenues of $820.3 million, up 1.8% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ revenue estimates but full-year revenue guidance meeting analysts’ expectations.

AdaptHealth delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 10.7% since reporting and currently trades at $10.07.

Best Q3: BrightSpring Health Services

Founded in 1974, BrightSpring Health Services offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

BrightSpring Health Services reported revenues of $3.33 billion, up 14.7% year on year, outperforming analysts’ expectations by 5.3%. The business had a very strong quarter with an impressive beat of analysts’ revenue and EPS estimates.

BrightSpring Health Services delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.8% since reporting. It currently trades at $41.41.

Brookdale

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS and revenue estimates.

Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 28.1% since the results and currently trades at $11.67.

Read our full analysis of Brookdale’s results here.

The Pennant Group

Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.

The Pennant Group reported revenues of $227.4 million, up 25.9% year on year. This result topped analysts’ expectations by 2.5%. It was a very strong quarter as it also produced full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

The Pennant Group scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 13.5% since reporting and currently trades at $28.58.

Read our full, actionable report on The Pennant Group here, it’s free for active Edge members.

Chemed

With a unique business model combining end-of-life care and household services, Chemed operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.

Chemed reported revenues of $624.9 million, up 3.1% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.

The stock is up 2.6% since reporting and currently trades at $450.62.

Read our full, actionable report on Chemed here, it’s free for active Edge members.

Looking back on healthcare providers & services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Cardinal Health and its peers.

The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality.

The 40 healthcare providers & services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 1.8% on average since the latest earnings results.

Cardinal Health

Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.

Cardinal Health reported revenues of $64.01 billion, up 22.4% year on year. This print exceeded analysts’ expectations by 7.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

"We are pleased with our strong broad-based operational and financial performance to begin fiscal 2026," said Jason Hollar, CEO of Cardinal Health.

Interestingly, the stock is up 20.7% since reporting and currently trades at $198.49.

We think Cardinal Health is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Guardant Health

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Guardant Health reported revenues of $265.2 million, up 38.5% year on year, outperforming analysts’ expectations by 12.6%. The business had an incredible quarter with an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Guardant Health scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 33.8% since reporting. It currently trades at $96.69.

Slowest Q3: Brookdale

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ revenue estimates.

Interestingly, the stock is up 15.9% since the results and currently trades at $10.56.

Read our full analysis of Brookdale’s results here.

Pediatrix Medical Group

With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.

Pediatrix Medical Group reported revenues of $492.9 million, down 3.6% year on year. This result surpassed analysts’ expectations by 3.2%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ same-store sales estimates and a beat of analysts’ EPS estimates.

The stock is up 32.9% since reporting and currently trades at $22.56.

Read our full, actionable report on Pediatrix Medical Group here, it’s free for active Edge members.

UnitedHealth

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

UnitedHealth reported revenues of $113.2 billion, up 12.2% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ customer base estimates but revenue in line with analysts’ estimates.

The company kept the number of customers flat at a total of 54.08 million. The stock is down 9.6% since reporting and currently trades at $330.25.

Read our full, actionable report on UnitedHealth here, it’s free for active Edge members.

What Happened?

Shares of senior living provider Brookdale Senior Living fell 3.8% in the afternoon session after a competitor, Acadia Healthcare (ACHC), significantly cut its 2025 financial outlook, triggering a sell-off across the healthcare facilities sector. Acadia announced that its professional and general liability expenses for 2025 were projected to be about $116 million, more than double the $54 million from 2024. This dramatic increase in costs forced the company to lower its adjusted earnings guidance for 2025 to a range of $1.94 to $2.04 per share, a steep decline from $3.30 in 2024. The news raised concerns that other operators in the industry, like Brookdale, might face similar pressures from rising liability claims. Compounding the issue, an analyst at Cantor Fitzgerald lowered the price target on Acadia's stock from $22.00 to $17.00.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Brookdale? Access our full analysis report here.

What Is The Market Telling Us

Brookdale’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 9 days ago when the stock gained 3.9% on the news that reports revealed the Trump administration considered extending the Affordable Care Act (ACA) subsidies. These subsidies, which are government financial aids to help people pay for health insurance, are crucial for insurers as they maintain a stable customer base. An extension would ensure continued revenue for companies with significant exposure to the ACA marketplace. The news prompted a strong positive reaction from investors, with Centene (CNC) shares jumping as much as 8%, Molina Healthcare (MOH) rising over 3%, and Oscar Health (OSCR) soaring 18%. The potential for a two-year extension reduces regulatory uncertainty for the sector, which investors view as a significant positive for the industry's outlook.

Brookdale is up 109% since the beginning of the year, and at $10.58 per share, it is trading close to its 52-week high of $11.25 from November 2025. Investors who bought $1,000 worth of Brookdale’s shares 5 years ago would now be looking at an investment worth $2,431.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the senior health, home health & hospice industry, including Option Care Health and its peers.

The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers.Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.

The 7 senior health, home health & hospice stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.8%.

Thankfully, share prices of the companies have been resilient as they are up 9% on average since the latest earnings results.

Option Care Health

With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.

Option Care Health reported revenues of $1.44 billion, up 12.2% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ revenue estimates but full-year EPS guidance in line with analysts’ estimates.

Interestingly, the stock is up 8.9% since reporting and currently trades at $31.24.

Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: The Pennant Group

Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.

The Pennant Group reported revenues of $229 million, up 26.8% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

The Pennant Group scored the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 11.5% since reporting. It currently trades at $28.08.

Is now the time to buy The Pennant Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Brookdale

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ revenue estimates.

Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 23.4% since the results and currently trades at $11.25.

Read our full analysis of Brookdale’s results here.

Addus HomeCare

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Addus HomeCare reported revenues of $362.3 million, up 25% year on year. This result topped analysts’ expectations by 2.2%. It was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 1.4% since reporting and currently trades at $120.68.

Read our full, actionable report on Addus HomeCare here, it’s free for active Edge members.

BrightSpring Health Services

Founded in 1974, BrightSpring Health Services offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

BrightSpring Health Services reported revenues of $3.33 billion, up 14.7% year on year. This print beat analysts’ expectations by 5.3%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

BrightSpring Health Services achieved the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 6.5% since reporting and currently trades at $36.22.

Read our full, actionable report on BrightSpring Health Services here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after reports revealed the Trump administration considered extending the Affordable Care Act (ACA) subsidies. 

These subsidies, which are government financial aids to help people pay for health insurance, are crucial for insurers as they maintain a stable customer base. An extension would ensure continued revenue for companies with significant exposure to the ACA marketplace. The news prompted a strong positive reaction from investors, with Centene (CNC) shares jumping as much as 8%, Molina Healthcare (MOH) rising over 3%, and Oscar Health (OSCR) soaring 18%. The potential for a two-year extension reduces regulatory uncertainty for the sector, which investors view as a significant positive for the industry's outlook.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Specialty Pharmaceuticals company Elanco jumped 3.5%. Is now the time to buy Elanco? Access our full analysis report here, it’s free for active Edge members.
• Specialized Medical & Nursing Services company AMN Healthcare Services jumped 2.8%. Is now the time to buy AMN Healthcare Services? Access our full analysis report here, it’s free for active Edge members.
• Senior Health, Home Health & Hospice company Brookdale jumped 3.9%. Is now the time to buy Brookdale? Access our full analysis report here, it’s free for active Edge members.
• Patient Monitoring company DexCom jumped 4.2%. Is now the time to buy DexCom? Access our full analysis report here, it’s free for active Edge members.
• Senior Health, Home Health & Hospice company Addus HomeCare jumped 2.9%. Is now the time to buy Addus HomeCare? Access our full analysis report here, it’s free for active Edge members.

Zooming In On DexCom (DXCM)

DexCom’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 3.9% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

DexCom is down 21% since the beginning of the year, and at $62.04 per share, it is trading 31.6% below its 52-week high of $90.75 from February 2025. Investors who bought $1,000 worth of DexCom’s shares 5 years ago would now be looking at an investment worth $793.92.