Investors feel optimistic about CHE's strong growth prospects in the VITAS business. Yet, unfavorable macroeconomic conditions are concerning.
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Chemed (CHE) reported earnings 30 days ago. What's next for the stock?
Chemed continues to present with exceptional economic characteristics now at depressed valuations vs. history. The business is highly profitable and earns high rates of return on all the capital that's been employed into its operations. Management has an extensive reinvestment runway to redeploy surplus funds and grow the intrinsic worth of the business.
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Morningstar.com published an interesting piece in July about the long-term health care crisis. It pointed out that Americans paid out $245 billion for long term care to paid caregivers, nursing homes and other forms of paid assistance.
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Chemed (CHE) possesses solid growth attributes, which could help it handily outperform the market.
Chemed's (CHE) VITAS segment delivers impressive revenue growth and margin expansion in the second quarter of 2024.
Chemed (CHE) came out with quarterly earnings of $5.47 per share, missing the Zacks Consensus Estimate of $5.54 per share. This compares to earnings of $4.71 per share a year ago.
Chemed's (CHE) robust VITAS business and strong financial stability raise investors' optimism.