December 16, 2025

Holistic Pulse

Healthcare is more important

Aveanna Healthcare Holdings Inc. (AVAH) Hit a 52 Week High, Can the Run Continue?

Aveanna Healthcare Holdings Inc. (AVAH) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Aveanna Healthcare (AVAH). Shares have been marching higher, with the stock up 88.6% over the past month. The stock hit a new 52-week high of $7.69 in the previous session. Aveanna has gained 63.5% since the start of the year compared to the -1.4% move for the Zacks Medical sector and the 9% return for the Zacks Medical – Outpatient and Home Healthcare industry.

The stock has an impressive record of positive earnings surprises, as it hasn’t missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2025, Aveanna reported EPS of $0.18 versus consensus estimate of $0.04 while it beat the consensus revenue estimate by 9.93%.

For the current fiscal year, Aveanna is expected to post earnings of $0.41 per share on $2.31 in revenues. This represents a 600% change in EPS on a 14.24% change in revenues. For the next fiscal year, the company is expected to earn $0.48 per share on $2.43 in revenues. This represents a year-over-year change of 15.48% and 5.07%, respectively.

Aveanna may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Aveanna has a Value Score of B. The stock’s Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 18X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.3X. On a trailing cash flow basis, the stock currently trades at 45.6X versus its peer group’s average of 17.9X. This isn’t enough to put the company in the top echelon of all stocks we cover from a value perspective.

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Aveanna currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Aveanna fits the bill. Thus, it seems as though Aveanna shares could have a bit more room to run in the near term.

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