Option Care Health, Inc. (OPCH) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Option Care (OPCH)? Shares have been on the move with the stock up 8.2% over the past month. The stock hit a new 52-week high of $35.13 in the previous session. Option Care has gained 49.6% since the start of the year compared to the 5% move for the Zacks Medical sector and the 3.9% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?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 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 $1.69 per share on $5.44 billion in revenues. This represents a 37.4% change in EPS on an 8.87% change in revenues. For the next fiscal year, the company is expected to earn $1.93 per share on $5.92 billion in revenues. This represents a year-over-year change of 13.96% and 8.76%, 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 is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort 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. 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.Option Care has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 20.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.7X. On a trailing cash flow basis, the stock currently trades at 21.1X versus its peer group's average of 14.9X. Additionally, the stock has a PEG ratio of 1.83. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Option Care currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.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 fits the bill. Thus, it seems as though Option Care shares could have potential in the weeks and months to come.How Does OPCH Stack Up to the Competition?Shares of OPCH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aveanna Healthcare Holdings Inc. (AVAH). AVAH has a Zacks Rank of # 1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of C.Earnings were strong last quarter. Aveanna Healthcare Holdings Inc. beat our consensus estimate by 250%, and for the current fiscal year, AVAH is expected to post earnings of $0.09 per share on revenue of $2.12 billion.Shares of Aveanna Healthcare Holdings Inc. have gained 35% over the past month, and currently trade at a forward P/E of 60.87X and a P/CF of 34.03X.The Medical - Outpatient and Home Healthcare industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for OPCH and AVAH, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Report Aveanna Healthcare Holdings Inc. (AVAH): 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