Option Care Health, Inc. (OPCH) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Option Care (OPCH)? Shares have been on the move with the stock up 10.7% over the past month. The stock hit a new 52-week high of $34.57 in the previous session. Option Care has gained 46.4% since the start of the year compared to the 6.7% move for the Zacks Medical sector and the 4.2% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?The stock has a great 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 February 26, 2025, Option Care reported EPS of $0.35 versus consensus estimate of $0.33 while it beat the consensus revenue estimate by 1.56%.For the current fiscal year, Option Care is expected to post earnings of $1.70 per share on $5.39 billion in revenues. This represents a 38.21% change in EPS on a 7.84% change in revenues. For the next fiscal year, the company is expected to earn $1.91 per share on $5.89 billion in revenues. This represents a year-over-year change of 12.65% and 9.26%, respectively.Valuation MetricsOption Care 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 has run ahead of itself.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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Option Care has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.5X. On a trailing cash flow basis, the stock currently trades at 20.6X versus its peer group's average of 13.9X. Additionally, the stock has a PEG ratio of 1.79. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Option Care 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 Option Care passes the test. Thus, it seems as though Option Care shares could still be poised for more gains ahead.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Option Care Health, Inc. (OPCH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks