For the most part, home health stocks performed well in January, with Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG) both seeing double-digit gains. But while Amedisys and LHC Group saw their stock values climb, Addus HomeCare Corporation (Nasdaq: ADUS) saw its stock dip.
That’s according to the latest Home Health Index (HHI) from mergers-and-acquisitions firm Stoneridge Partners.
The HHI — updated on a monthly basis — follows the market values of Amedisys, LHC Group and Addus, though it does not include the Frisco, Texas-based Addus in its final tabulations.
Home health stocks were down across the board in December, but now they’re looking up.
“They’ve rebounded in the early part of 2019 thanks to great performances by both Amedisys and LHC Group,” Stoneridge Partners President Rich Tinsley said in a statement. “Addus is the only exception at this time, which is still down. But we’ll get more insight into how these companies are really doing when they report quarterly earnings this month.”
Amedisys and LHC Group are both scheduled to release their Q4 2018 earnings after the market closes on Feb. 27, with each presenting on their financial results the following morning.
Overall, home health stocks rose 11.87% in January compared to the previous month, according to the Stoneridge HHI. The S&P 500, meanwhile, climbed 8.51%.
Baton Rouge, Louisiana-based Amedisys saw the biggest uptick last month in its stock values, which rose by 12.22% in January compared to December. Most recently, the home health, hospice and personal care services powerhouse closed on its $340 million acquisition of Compassionate Care Hospice on Feb. 4.
Stock values for Lafayette, Louisiana-based LHC Group increased by 11.42% in January compared to the previous month. At the end of January, LHC Group announced it had secured a new joint venture agreement with Unity Health, resulting in shared ownership of two home health providers in Arkansas.
“Our JV ‘strategy’ started back in 1998 when we partnered with our first community hospital,” CEO and Chairman Keith Myers previously told Home Health Care News. “And that first partnership started a model that now 20 years later has led to LHC Group being the leader in hospital and health system joint ventures for providing health care services in the home.”
While Amedisys and LHC Group stocks were up, Addus stock fell by 10.48% in January compared to December.
Also of note: The HHI was up 102.69% in January over the trailing 12 months, according to Stoneridge. The S&P 500, in comparison, was down 4.15% over the trailing 12 months.
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