5 healthcare stocks that rose more than 80% YTD

Highlights

• Apollo Medical Holdings, Inc. (NASDAQ:AMEH) manages physician groups and healthcare services for some 1.1 million patients.

• Cross Country Healthcare, Inc. (NASDAQ:CCRN) earned US$375 million in revenue in the September quarter. Its nurse and allied staffing segment contributed 95% of revenue.

• The Joint Corp. (NASDAQ:JYNT) runs 583 franchise clinics and 83 company-owned clinics. The company doctors provide personalized treatment plans for patients.

The healthcare sector comprises various segments, such as drugs, medical equipment, and healthcare facilities, including hospitals, clinics, nursing homes, etc. As the Omicron threat looms, the healthcare industry has been on alert to avert another round of covid destruction.

The new covid variant has brought new uncertainties to the economy. As a result, the temporary staffing market, which was earlier expected to decline, could see growth. In 2020, the US temporary staffing market grew 8% but was projected to fall 7% in 2022.

Here we discuss five stocks engaged in healthcare facilities that outperformed the S&P 500 Managed Health Care Sub Industry Index, generating 23.78% return year-to-date.

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Apollo Medical Holdings, Inc. (NASDAQ:AMEH)

The Alhambra, California-based Apollo Medical Holdings is a physician-centric, technology-powered healthcare management company. It provides outcome-based medical care. Its delivery platform enables healthcare providers to participate in medical care arrangements and empower them to effectively deliver care to patients with multiple chronic conditions. 

For the September quarter of 2021, the company earned US$227 million in revenue against US$180 million in the same period of 2020. The net income was US$34.28 million or US$(0.74) per share diluted compared to US$16.7 million or US$(0.45) in the September quarter of 2020.

As of September 30, 2021, it managed 12 affiliated physician groups, serving approximately 1.1 million patients. The company has a market capitalization of US$4.2 billion and a P/E ratio of 47.85. The stock closed at US$88.54 on December 2, 2021.

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Cross Country Healthcare, Inc. (NASDAQ:CCRN)

The Boca Raton, Florida-headquartered company provides workforce solutions such as staffing for hospitals, government facilities, physician practice groups, ambulatory care facilities, etc.

Its services revenue was US$375 million for the September quarter of 2021 compared to US$194 million in the corresponding period of 2020. The net income was US$23.4 million against a net loss of US$1.33 million in the September quarter of the previous year.

The Nurse and Allied Staffing segment contributed approximately 95% of the revenue, while Physician Staffing contributed around 5% of total revenue in Q3, 2021.

Cross Country has a market capitalization of US$986 million and a P/E ratio of 16.32. The stock closed at US$26.38 on December 2, 2021.

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The Joint Corp. (NASDAQ:JYNT)

Headquartered in Scottsdale, Arizona, the company manages chiropractic clinics. It also operates clinics through the franchisee model and sells regional developer rights in the US. The doctors provide personalized treatment plans for patients.

For the September quarter of 2021, it reported revenue of US$20.99 million compared to US$15.4 million in the same period of 2020. The company earned a net income of US$1.9 million compared to US$1.6 million in the same period a year ago.

It had 583 franchise clinics and 83 company-owned clinics as of September 30, 2021. The company has a market capitalization of US$1.03 billion and a P/E ratio of 60.41.

The stock closed at US$76.11 on December 2, 2021.

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Tenet Healthcare Corporation (NASDAQ:THC)

The Dallas, Texas-based Tenet Healthcare operates around 60 hospitals and nearly 460 healthcare facilities in the US. The OPD facilities include surgical hospitals, freestanding imaging centers, freestanding emergency rooms, ambulatory surgery centers, urgent care centers, etc. 

For the September quarter, 2021, it posted US$4.89 billion in revenue and US$449 million in net income. In the September quarter of 2020, the revenue was US$4.55 billion, and the net loss was US$196 million.

The company has a market capitalization of US$7.6 billion, a P/E ratio of 7.12, and a forward P/E ratio of 11.64. The stock closed at US$74.02 on December 2, 2021.

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Source - pixabay

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CorVel Corp. (NASDAQ:CRVL)

The Fort Worth, Texas-based company uses AI, machine learning and natural language processing technology to manage care and healthcare costs. It provides services to insurance companies, government entities, TPAs, and self-administered employers.

CorVel posted revenue of US$158 million in the September quarter of 2021 compared to US$136 million for the same period in 2020. Its net income for the September quarter of 2021 was US$16.07 million compared to US$11.87 million in the September quarter of 2020.

The company has a market capitalization of US$3.38 billion and a P/E ratio of 58.95. The CRVL stock closed at US$194.84 on December 2, 2021.

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Bottomline

The healthcare industry is one of the largest economic sectors in the US. It contributed around 18% of GDP in 2020. The pandemic has been a blessing in disguise for the sector. Demand for healthcare is set to grow amid various health emergencies globally.