Chemed Corp. stock price. 52-week low of $524.5 amid market shifts By Investing.com.
In a challenging market environment, Chemed Corp (NYSE: ) stock touched a 52-week low, falling to $524.5. This latest price level reflects a significant decline in investor sentiment as the company navigates a period marked by economic headwinds. Over the past year, Chemed Corp has seen its stock price drop significantly, with 1-year change showing a decrease of 10.46%. The decline highlights the pressures the health care and chemicals company is facing, as investors adjust their expectations in response to the company’s performance and the broader market.
In other recent news, Chemed Corporation reported mixed Q3 results, with significant growth in its VITAS Healthcare business versus a dip in its Roto-Rooter services. VITAS Healthcare saw a 6.3% increase in patient admissions, a 15.5% increase in daily headcount, and a 17.3% increase in revenue to $391.4 million. However, Roto-Rooter experienced a 6.9% decline in revenue to $214.8 million and an 11.7% drop in call volume. Despite these challenges, Chemed adjusted its full-year earnings per share guidance to $23-$23.15, reflecting a positive outlook for VITAS and the Roto-Rooter operational stabilization plan.
As a result of this latest development, Chemed reaffirmed its 2024 guidance range of $23.55 to $23.80. The company expects future VITAS operations to exceed pre-pandemic growth rates, while Roto-Rooter’s Q4 revenue is expected to remain in line with Q3. The company has also expanded its dedicated Roto-Rooter sales force to improve online search performance.
Despite the mixed results, VITAS Healthcare experienced nine consecutive quarters of daily population growth, thanks to strategic acquisitions and the implementation of new initiatives. However, Roto-Rooter’s residential revenue and call volume declined due to increased competition and a switch to a new search engine marketing company. Despite these headwinds, Chemed remains optimistic about commercial growth in 2025.
InvestingPro Insights
Despite Chemed Corp (CHE) touching a 52-week low, InvestingPro’s data reveals some strong aspects of the company’s financial health. The company’s revenue growth of 6.83% in the last twelve months from Q3 2024 shows continued business growth, even in a challenging market. Furthermore, Chemed’s EBITDA growth of 16.61% over the same period suggests improved efficiency.
InvestingPro Tips highlights Chemed’s strong dividend history, as it has maintained dividend payments for 54 consecutive years and increased them for 15 consecutive years. This commitment to shareholder returns may provide some stability to investors during periods of market volatility. Additionally, the company’s management has been buying shares aggressively, which may indicate confidence in the company’s long-term prospects.
It’s worth noting that although the stock has taken off recently, with a 12.67% drop in the past week, Chemed operates with a limited level of debt and has cash flow that can adequately cover interest payments. This financial stability may help the company weather the current market challenges.
For investors looking for a comprehensive analysis, InvestingPro offers 13 additional advisories for Chemed Corp, which provide in-depth information about the company’s financial position and market performance.
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