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5-Star Stocks Poised to Pop: Almost Family

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Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home nursing services specialist Almost Family (Nasdaq: AFAM  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Almost Family's business and see what CAPS investors are saying about the stock right now.

Almost Family facts

Headquarters (Founded) Louisville, Ky. (1985)
Market Cap $329.0 million
Industry Health care services
Trailing-12-Month Revenue $330.3 million
Management CEO William Yarmuth (since 1992)
CFO Steven Guenthner (since 1992)
Return on Capital (Average, Past 3 Years) 18.4%
Cash/Debt $41.6 million / $2.9 million
Competitors Amedisys (Nasdaq: AMED  )
Gentiva Health Services (Nasdaq: GTIV  )
LHC Group (Nasdaq: LHCG  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 890 members who have rated Almost Family believe the stock will outperform the S&P 500 going forward. These bulls include valuehunter79 and EQInvestments.

Just last month, valuehunter79 tapped Almost Family as a healthy opportunity: 

Home Health Care service companies have very good potential. Looks undervalued, good balance sheet. Last couple of years trend looks very promising with this company.

Home health care providers offer an obvious play on the aging baby boomer demographic, and Almost Family remains one of our community's favorite ways to pursue that sector. In fact, Almost Family's three-year average return on capital (18.4%) easily trumps that of close foes Amedisys (14.1%) and Gentiva (8.9%), but is somewhat behind LHC Group (22.4%). Almost Family also bests other senior living stocks like Sunrise Senior (NYSE: SRZ  ) (-2.2%), and Assisted Living Concepts (NYSE: ALC  ) (3.6%).

CAPS member EQInvestments expands on Almost Family as a particularly timely play, as well:

With health care stocks being brutalized this year by the uncertainty surrounding the Health Care Bill, and especially with the home health care service sector being trounced by federal investigations, these stocks are dirt cheap. In addition to being extremely undervalued in the present, with the Babyboomer generation retiring, increasingly distant family relations in the U.S., and advances in medicine and treatment increasing life expectancy, companies such as Almost Family are going to boom over the next 5-20 years.

What do you think about Almost Family, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Almost Family. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 10, 2010, at 12:50 PM, DougH11 wrote:

    Wow, this is an article? Maybe should mention one of the reasons the stock dropped from $60. The company is being investigated by a few federal agencies.

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Related Tickers

5/25/2012 3:59 PM
GTIV $5.81 Up +0.22 +3.94%
Gentiva Health Ser… CAPS Rating: ****
LHCG $16.83 Down -0.09 -0.53%
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SRZ $5.91 Up +0.32 +5.72%
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