One company well positioned to take advantage of the coming efficiency drive in health care is LHC Group (LHCG). The Lafayette, La.-based home-health-care provider focuses on rural areas. Wallis says, "Visiting nurses are a cost-effective way to deliver patient care and improve outcomes, because it is cheaper than having a hospital provide the care." At 20.50, the stock is just below where they started to accumulate it, at 20.65, due to concerns that Medicare reimbursements may not continue rising in light of federal-budget constraints. But Wallis argues that a large consolidator such as LHC should gain market share if smaller operations go out of business. Earnings are expected to come in at $1.56 for '08 and $1.99 in '09.

Market Outperform - Price 35.47 on Dec. 2
by Avondale Partners

LHCG announced completion of two acquisitions. [Lafayette, La.-based LHCG provides health-care services in rural communities in the southern U.S., and is focused on growing its home-based services through acquisitions and startups.]...[A]bout 82% of revenues in 2006 were from Medicare. We favor the long-term outlook for the home-nursing sector and LHCG. Home health is the lowest-cost setting of Medicare post-acute care; the sector is fragmented and growing. LHCG '09 guidance call[s] for revenues above our previous estimates....Trading at 18 times our 2009 EPS estimate and growing [at above] 20%, we believe shares of LHCG remain attractive. Target: 37. Market cap: $655 million.

PE: 25 PEG: 1.21

LHC Group (LHCG) was upgraded by BB&T Capital Mkts from hold to buy.

Upgraded by Stifel Nicolaus from Hold to Buy

strong growth,increasing eps,beleave they will continue to grow at a rapid pace

none

health care is a growth industry

Z

growth