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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 $311.7 million
Industry Health-care services
Trailing-12-Month Revenue $338.21 million
Management

Chairman/CEO William Yarmuth (since 1992)

CFO C. Steven Guenthner (since 1992)

Return on Equity (Average, Past 3 Years) 21.7%
Cash/Debt $55.46 million / $1.47 million
Competitors

Amedisys (Nasdaq: AMED  )

Gentiva Health Services (Nasdaq: GTIV  )

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

On CAPS, 97% of the 964 members who have rated Almost Family believe the stock will outperform the S&P 500 going forward. These bulls include SpartanMAC and All-Star TMFHelical, who is ranked in the top 3% of our community.

Earlier this year, SpartanMAC listed several of Almost Family's positives:

Selling below intrinsic value. Good growth prospects. Management margins / returns are well above industry averages.

In fact, Almost Family boasts a solid three-year average operating margin of 14.2%. That's higher than that of other home health-care stocks like Amedisys (13.4%), Chemed (NYSE: CHE  ) (11.1%), and Gentiva Health (9.8%).

CAPS All-Star TMFHelical elaborates on the Almost Family bull case:
 

Home care is facing a changing regulatory / reimbursement environment. This will negatively affect margins on companies in this space. But the trend to more home care should stay in place, as it is a cheaper alternative to hospital and nursing home care, and one patients embrace. Lumpy time to get in, but one that should pay off in the long term.

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
AFAM $21.88 Up +0.97 +4.64%
Almost Family, Inc… CAPS Rating: *****
GTIV $5.81 Up +0.22 +3.94%
Gentiva Health Ser… CAPS Rating: ****
CHE $56.30 Up +0.61 +1.10%
Chemed Corp CAPS Rating: ****
AMED $10.93 Up +0.41 +3.90%
Amedisys CAPS Rating: ***

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