After three of the largest publicly-traded home health care companies saw their share prices soar in January, the market rally continued in February at a more modest pace, according to the most recent Home Health Index by Stonebridge Partners.
The index, which tracks the market values for Almost Family (Nasdaq: AFAM), Amedisys Inc. (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG), rose 4.84% in February from the previous month, slightly underperforming the S&P 500, which rose 5.12% during the month.
The three companies have seen their share prices surge over the past few months, as the greater stock market has continued to rise in what has been dubbed the “Trump Rally.” By comparison, the Home Health Index rose 7.72% in January, the month President Trump took office.
“The economy continued to strengthen in February, with the overall Home Health Index rising steadily,” said Rich Tinsely, president of Stonebridge Partners. “Investors’ excitement over home health may have dialed back from January, but the greater economy picked up steam during the month, in line with the overall stock market rally.”
Almost Family’s stock price rose 5.06% in February, with a year-to-date increase of 30.39%.
Baton Rouge-based Amedisys saw its share price jump 12.08% in February. Amedisys recently announced it would acquire the home health and hospice facilities of Tenet Healthcare (NYSE: THC), a major hospital company, in a deal estimated at $20 million.
Conversely, LHC Group, based in Lafayette, Louisiana, saw its share prices decline slightly during the month, dropping 2.45% from January. Year to date, its stock is up 7.45%. The company announced in February it would add hospice to its current home health locations as part of its growth strategy.
Addus Homecare (Nasdaq: ADUS), based in Downers Grove, Illinois, also saw its stock price decline during the month, with a slight drop in value of 0.99% from January. Year to date, the stock is up a whopping 44.76%. Addus is not tracked in the Index because so little of its revenue comes from Medicare.
Written by Amy Baxter