4-Star Stocks Poised to Pop: LHC Group

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, post-acute health-care services provider LHC Group (NAS: LHCG) has earned a respected four-star ranking.

With that in mind, let's take a closer look at LHC's business and see what CAPS investors are saying about the stock right now.

LHC facts

Headquarters (founded)

Lafayette, La. (1994)

Market Cap

$422.6 million

Industry

Health-care services

Trailing-12-Month Revenue

$651.65 million

Management

Co-Founder/Chairman/CEO Keith Myers

President/COO Donald Stelly

Return on Equity (average, past 3 years)

25.3%

Cash/Debt

$388,000 / $0

Competitors

Amedisys (NAS: AMED)

Gentiva Health Services (NAS: GTIV)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 265 members who have rated LHC believe the stock will outperform the S&P 500 going forward. These bulls include All-Star BuffettJunior1 and ParkPlace616.

Just last week, BuffettJunior1 tapped LHC as a healthy bargain: "This stock is dirt cheap! The aging baby-boomer population will provide this company with steady growth for a very long time."

LHC's three-year average return on equity of 25.3% even tops that of industry peers such as Amedisys (16.7%), Gentiva (19.7%), and Almost Family (NAS: AFAM) (21.7%).

CAPS member ParkPlace616 expands on the outperform argument:

LHC continues to rack up great numbers and build new partnerships even in the face of government regulations and Medicare tightening. A company like LHC is well positioned to survive this new world as their types of services will become increasingly important.

What do you think about LHC, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Almost Family. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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