Spotting Winners: Option Care Health (NASDAQ:OPCH) And Senior Health, Home Health & Hospice Stocks In Q3

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:

• Senior Health, Home Health & Hospice company BrightSpring Health Services jumped 2.5%. Is now the time to buy BrightSpring Health Services? Access our full analysis report here, it’s free for active Edge members.
• Genomics & Sequencing company 10x Genomics jumped 8.2%. Is now the time to buy 10x Genomics? Access our full analysis report here, it’s free for active Edge members.
• Medical Devices & Supplies - Imaging, Diagnostics company QuidelOrtho jumped 7.7%. Is now the time to buy QuidelOrtho? Access our full analysis report here, it’s free for active Edge members.
• Drug Development Inputs & Services company Medpace jumped 4.3%. Is now the time to buy Medpace? Access our full analysis report here, it’s free for active Edge members.
• Drug Development Inputs & Services company Fortrea jumped 8.4%. Is now the time to buy Fortrea? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Fortrea (FTRE)

Fortrea’s shares are extremely volatile and have had 70 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 9.1% 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.

Fortrea is down 35.9% since the beginning of the year, and at $11.96 per share, it is trading 49.6% below its 52-week high of $23.73 from December 2024. Investors who bought $1,000 worth of Fortrea’s shares at the IPO in June 2023 would now be looking at an investment worth $397.34.

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.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the senior health, home health & hospice industry, including Chemed 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%.

In light of this news, share prices of the companies have held steady as they are up 4.6% on average since the latest earnings results.

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 print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $441.72.

Read our full report on Chemed 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 achieved 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 5.9% since reporting. It currently trades at $26.67.

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.

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 19% since the results and currently trades at $10.85.

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 print 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 down 4.7% since reporting and currently trades at $113.40.

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 number 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 2% since reporting and currently trades at $34.67.

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

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the healthcare providers & services industry, including Pediatrix Medical Group 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. On average, they are relatively unchanged since the latest earnings results.

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 print exceeded analysts’ expectations by 3.2%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ same-store sales and EPS estimates.

“Our operating results for the third quarter exceeded our expectations and were driven by a combination of reimbursement-related factors, including strong collection activity, higher patient acuity and slightly favorable payor mix, as well as operational consistency,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group.

Interestingly, the stock is up 36.2% since reporting and currently trades at $23.11.

Is now the time to buy Pediatrix Medical Group? Access our full analysis of the earnings results 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 a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Guardant Health delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 47% since reporting. It currently trades at $106.25.

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

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 19% since the results and currently trades at $10.85.

Read our full analysis of Brookdale’s results here.

NeoGenomics

Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.

NeoGenomics reported revenues of $187.8 million, up 11.9% year on year. This number surpassed analysts’ expectations by 2.1%. Overall, it was a strong quarter as it also logged EPS in line with analysts’ estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 9.2% since reporting and currently trades at $11.47.

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

Elevance Health

Formerly known as Anthem until its 2022 rebranding, Elevance Health is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Elevance Health reported revenues of $50.71 billion, up 12.4% year on year. This result topped analysts’ expectations by 1.5%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The company lost 252,000 customers and ended up with a total of 45.37 million. The stock is down 9.8% since reporting and currently trades at $319.26.

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

What Happened?

A number of stocks jumped in the afternoon session after 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.

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:

• Branded Pharmaceuticals company Pfizer jumped 2.9%. Is now the time to buy Pfizer? Access our full analysis report here, it’s free for active Edge members.
• Health Insurance Providers company UnitedHealth jumped 2.6%. Is now the time to buy UnitedHealth? Access our full analysis report here, it’s free for active Edge members.
• Generic Pharmaceuticals company Viatris jumped 2.9%. Is now the time to buy Viatris? Access our full analysis report here, it’s free for active Edge members.
• Senior Health, Home Health & Hospice company Addus HomeCare jumped 3%. Is now the time to buy Addus HomeCare? Access our full analysis report here, it’s free for active Edge members.
• Testing & Diagnostics Services company Quest jumped 2.8%. Is now the time to buy Quest? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Addus HomeCare (ADUS)

Addus HomeCare’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 3.3% on the news that markets continued to rally amid growing speculation of an impending interest rate cut by the Federal Reserve. 

Following a favorable Consumer Price Index (CPI) report, investors are increasingly betting on a rate reduction next month, a sentiment amplified by U.S. Treasury Secretary Scott Bessent's call for a significant cut. This has fueled a 'risk-on' environment across Wall Street. Lower interest rates are typically beneficial for growth-oriented sectors like healthcare, as they reduce the cost of borrowing for research and innovation and increase the present value of future earnings.

Addus HomeCare is down 8.7% since the beginning of the year, and at $113.40 per share, it is trading 16.6% below its 52-week high of $135.92 from January 2025. Investors who bought $1,000 worth of Addus HomeCare’s shares 5 years ago would now be looking at an investment worth $1,167.

What Happened?

A number of stocks jumped in the afternoon session after 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.

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:

• Immuno-Oncology company Natera jumped 3.2%. Is now the time to buy Natera? Access our full analysis report here, it’s free for active Edge members.
• Generic Pharmaceuticals company Amneal jumped 3%. Is now the time to buy Amneal? Access our full analysis report here, it’s free for active Edge members.
• Senior Health, Home Health & Hospice company Chemed jumped 3.2%. Is now the time to buy Chemed? Access our full analysis report here, it’s free for active Edge members.
• Senior Health, Home Health & Hospice company The Pennant Group jumped 3%. Is now the time to buy The Pennant Group? Access our full analysis report here, it’s free for active Edge members.
• Hospital Chains company HCA Healthcare jumped 3.3%. Is now the time to buy HCA Healthcare? Access our full analysis report here, it’s free for active Edge members.

Zooming In On HCA Healthcare (HCA)

HCA Healthcare’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 4.4% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading. Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% the previous month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.

HCA Healthcare is up 65% since the beginning of the year, and at $491.23 per share, has set a new 52-week high. Investors who bought $1,000 worth of HCA Healthcare’s shares 5 years ago would now be looking at an investment worth $3,288.