Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at BrightSpring Health Services (NASDAQ: BTSG) 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. On average, they are relatively unchanged since the latest earnings results.

BrightSpring Health Services (NASDAQ: BTSG)

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) 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 exceeded analysts’ expectations by 5.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

"We are pleased with our third quarter organizational results," said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company.

BrightSpring Health Services achieved the biggest analyst estimates beat but had the weakest full-year guidance update of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 6.6% since reporting and currently trades at $31.74.

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

Best Q3: The Pennant Group (NASDAQ: PNTG)

Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ: PNTG) 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. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $24.91.

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 (NYSE: BKD)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) 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 13.2% since the results and currently trades at $10.34.

Read our full analysis of Brookdale’s results here.

Addus HomeCare (NASDAQ: ADUS)

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) 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 beat analysts’ expectations by 2.2%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 6.8% since reporting and currently trades at $110.75.

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

AdaptHealth (NASDAQ: AHCO)

With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) 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 number surpassed analysts’ expectations by 2.5%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ revenue estimates but full-year revenue guidance meeting analysts’ expectations.

AdaptHealth had the slowest revenue growth among its peers. The stock is up 3.9% since reporting and currently trades at $9.46.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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