LHC Group, Inc. (NASDAQ:LHCG)

High EPS & Revenue Growth.

God ROE, No Debt, Solid Growth, will benefit from baby boomers getting older.

Although there is risk given the current unpredictability in the health care sector (due to government regulations, etc.), I think the aging US population will ultimately expand this companies customer base. I think this business is best poised to perform amongst it's peers to take advantage of this.

Stephens just upgraded LHCG to 'overweight'

Love the home health care story for an aging population and believe the worries about relying on medicare are overblown. The numbers are phenomenal. AN excellent growth record of 27.1%, zero debt, and a Price to earnings ratio of only 0.7. Gotta love the margin of error that those numbers offer.

R industry starts screen

MFI stock, good history

To see why I believe LHCG will outperform - Click here:
http://nkvalueinvest.blogspot.com/

Here's what Usnzth writes on 12/7/2010:

Let's start with a stock that has ROE over 21%, less than 2% debt to capital, and a P/E of 9.

Then we have strong management with steady earnings growth in an industry set to explode with the aging baby boomers.

Lastly, we have a price drop of over 11% (over $3.00 per share) over the past five days because of a forward earnings adjustment of 10 cents per share.

I feel that this solid company has been oversold on a bit of bad news. Yes, the Meidcare reimbursements will drop five percent, but management is telling us this will make - at the most - a 4 percent difference in the bottom line next year.

I see no need for such a severe haircut, and bet that this stock will bounce back above $26.00 before the end of January, 2011.

Earnings for quarter up 35% over last year. Sales for quarter up 25% over last year. Peat earnings estimates by 4%. Debt 4%. Profit Margin 16%. ROE 22%. Worth $38.75. Trading at a 44% discount.

I have a target price of over $40/share.

Two words: insider selling.
Several more: breaking down ahead of the market palpitations of early May.
Several more: our Congress of Ninnies now "investigating" the industry. Now what these dimwits need to investigate is how a country with our political leadership does not have the approximate living standards of Upper Volta. But that aside, I guess the two salient words I would add are: headline risk.

Speculating: Forbes #4 Best Small Company (November 2009)
PEG (5yr Expcted): .79
Profit Margin (8% - room for improvement to say the least)
ROA: 21%
ROE: 22%
Low Debt: 4mn

running a new screen.

Long-term pick. Significant short-term pullback is likely if the market continues to drop as the stock is very high off it's lows.

Terrific company in a niche market with no direct competition (rural nursing homes / quasi health care facilities). Amazing growth rate and very intelligent management. History of making great acquisitions. Very good margins. Trading at just 13x my estimate of FCF.

Only risk is that many of the clientele are on medicare and thus any significant government cut-backs of medicare will obviously be detrimental.

I like the growth, EPS of around 2, and return on Equity of 25. So thumbs up for me

-

I am in this stock for the long haul. The next few years will be health of babyboomers. Since the balance sheet and p/e ratio all look positive this stock should outperform the rest in the sector.

It is clear that something bearish has likely occurred or is on the horizon for stocks in LHCG's sub industry group (i.e. Home Health Care companies compensated by Medicare). If you look at the price action on weekly charts of LHCG, AFAM and AMED in 2008/09; you will clearly see that they have topped and are now declining on massive volume down days despite reporting outstanding earnings and revenue growth for last quarter and giving higher guidance for up coming year and quarter! This is tremendous divergence and people long these stocks should at least consider closing positions. I am not saying that these stocks will certainly go lower but the odds do favor continued downward movement in these stocks over the next few months hence my under perform rating.