(GTIV) - Gentiva Health Services, Inc - positioned to benefit from growth of the home healthcare industry

GTIV has met earnings estimates in each of the past three quarters. Six analysts have raised their forecasts for 2007. Over the past month, 2007 estimates have increased eight cents to $1.15 per share. The company's average broker rating has been steady at 2.89. GTIV is trading at 17.3x next year's estimate, slightly below the projected long-term growth rate of 18.25%. Full Analysis Gentiva Health Services, Inc. (GTIV) is the nation s largest provider of comprehensive home healthcare services, with more than 500 owned and operated direct service delivery units at approximately 400 locations in 36 states. Gentiva derives revenues through the provision of (1) home healthcare services on a direct basis to patients, including specialty services and neuro-rehabilitation services; (2) home healthcare services on an indirect basis through the delivery of national, regional, and local administrative services to managed care organizations and self-insured employers; and (3) home healthcare consulting services to independent and hospital-based home health agencies. The graying of the population and an increasing focus on healthcare cost containment underpins a shift towards lower-cost (and more convenient) solutions, such as home healthcare. According to Zacks Equity Research Analyst Chris Kallos, the company is well positioned to benefit from growth of the home healthcare industry through both its geographic reach and multiple service offering. A key feature of the Gentiva business model is the co-ordination of ancillary care services to member patients of managed care organizations through the CareCentrix unit. CareCentrix contracts, the largest being with CIGNA, provide relative earnings stability and valuable preliminary market data for business development of GTIV s direct services. The company has recently initiated a number of productivity initiatives designed to contain administrative costs and foster internal growth, which if successful will cushion operating margins to any sudden changes to government-sourced revenues. GTIV has met earnings estimates in each of the past three quarters. Six analysts have raised their forecasts for 2007. Over the past month, 2007 estimates have increased eight cents to $1.15 per share. The company's average broker rating has been steady at 2.89. GTIV is trading at 17.3x next year's estimate, slightly below the projected long-term growth rate of 18.25%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home