Aveanna Healthcare Holdings Inc. (AVAH) Hits Fresh High: Is There Still Room to Run?

Shares of Aveanna Healthcare (AVAH) have been strong performers lately, with the stock up 13.2% over the past month. The stock hit a new 52-week high of $9.36 in the previous session. Aveanna has gained 103.9% since the start of the year compared to the 0.2% move for the Zacks Medical sector and the 7.5% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 7, 2025, Aveanna reported EPS of $0.18 versus consensus estimate of $0.04 while it beat the consensus revenue estimate by 9.93%.For the current fiscal year, Aveanna is expected to post earnings of $0.41 per share on $2.31 in revenues. This represents a 600% change in EPS on a 14.24% change in revenues. For the next fiscal year, the company is expected to earn $0.48 per share on $2.47 in revenues. This represents a year-over-year change of 15.48% and 6.95%, respectively.Valuation MetricsThough Aveanna has recently hit a 52-week high, what is next for Aveanna? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Aveanna has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 22.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 21.2X. On a trailing cash flow basis, the stock currently trades at 56.8X versus its peer group's average of 20X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Aveanna currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Aveanna passes the test. Thus, it seems as though Aveanna shares could have a bit more room to run in the near term.How Does AVAH Stack Up to the Competition?Shares of AVAH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is U.S. Physical Therapy, Inc. (USPH). USPH has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of C.Earnings were strong last quarter. U.S. Physical Therapy, Inc. beat our consensus estimate by 14.08%, and for the current fiscal year, USPH is expected to post earnings of $2.61 per share on revenue of $773.83 million.Shares of U.S. Physical Therapy, Inc. have gained 16% over the past month, and currently trade at a forward P/E of 34.85X and a P/CF of 26.22X.The Medical - Outpatient and Home Healthcare industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AVAH and USPH, even beyond their own solid fundamental situation.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aveanna Healthcare Holdings Inc. (AVAH): Free Stock Analysis Report U.S. Physical Therapy, Inc. (USPH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks