Zacks Equity Research also declared the company as "oversold" and noted that it has a healthy "Relative Strength Index" at 15.76.
The moves come a day after the personal home care and support services provider dropped to a new 52-week low of $17.02.
Separately, TheStreet Ratings team rates ADDUS HOMECARE CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADDUS HOMECARE CORP (ADUS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ADDUS HOMECARE CORP has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ADDUS HOMECARE CORP increased its bottom line by earning $1.01 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $1.01).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Providers & Services industry average. The net income increased by 12.2% when compared to the same quarter one year prior, going from $2.43 million to $2.73 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 17.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ADUS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ADUS has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for ADDUS HOMECARE CORP is currently lower than what is desirable, coming in at 26.74%. Regardless of ADUS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ADUS's net profit margin of 3.54% compares favorably to the industry average.
- You can view the full analysis from the report here: ADUS Ratings Report