Addus HomeCare Corporation – Medical Company Stocks
Addus HomeCare is a leading company in the homecare and hospice segment. Healthcare is coming back into the news lately as many countries around Europe are facing a fourth wave of the pandemic. What is important in this wave is that vaccinated people are also seeing breakthrough cases. Addus HomeCare caters to the chronically ill and elderly patients and offers them a range of services at their homes. Addus HomeCare has a presence in 22 states of the US. The company is headquartered in Frisco, Texas which is a city in the Dallas area. The company is fast-growing, having more than doubled its revenue during the past four years. Addus HomeCare’s business proposition is based on the cost advantage that it offers chronically ill patients over nursing homes. It is estimated that nursing homes tend to cost 3 times what Addus HomeCare charges, thanks to its asset-light business model. If you are looking to buy medical sector stocks, then Addus HomeCare can be studied more closely.
Addus Announces Q32021 Financial Numbers
On 2nd November 2021, Addus HomeCare announced its third-quarter 2021 earnings numbers. The revenue grew 11.7% year on year from $193.9 million to $216.6 million. The gross margin improved slightly from 29% in Q32020 to 30.9%. Meanwhile, the net income grew from $9.1 million to $11.5 million. The net income per share on a diluted basis was up from $0.57 to $0.72. Company CEO Dirk Allison said that Addus HomeCare benefitted from $350 million in State Aid but the company performance was also strong as evident from the record results. If you are an investor looking for medical company stocks, then there are plenty of pharma names to choose from. However, if you want to look at niches like homecare, then Addus HomeCare is an interesting business.
Buy Medical Sector Stocks
Addus HomeCare’s stock has grown 10X from 2013 to 2021. It was priced around $10 in 2013 and its price in November 2021 is above $100. The stock had been in a downtrend in 2021. However, it has grown more than 30% in just over a month recently.