Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Res-Care (Nasdaq: RSCR ) , which provides support services to people with physical and mental disabilities, has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Res-Care's business and see what CAPS investors are saying about the stock right now.
ResCare facts
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Headquarters (Founded)
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Louisville, Ky. (1974)
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Market Cap
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$269.0 million
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Industry
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Health-care services
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Trailing-12-Month Revenue
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$1.6 billion
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Management
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CEO Ralph Gronefeld, Jr. (since 2002)
CFO David Miles (since 2005)
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Compound Annual Revenue and Net Income Growth (Over Past 5 Years)
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9.8% and 22.4%
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Cash / Debt
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$4.7 million / $213.8 million
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Competitors
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Providence Service (Nasdaq: PRSC )
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CAPS Members Bullish on RSCR Also Bullish on
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GigaMedia (Nasdaq: GIGM )
American Oriental Bioengineering (NYSE: AOB )
Johnson & Johnson (NYSE: JNJ )
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CAPS Members Bearish on RSCR Also Bearish on
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Whole Foods Market (Nasdaq: WFMI )
Onyx Pharmaceuticals (Nasdaq: ONXX )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, nearly 98% of the 123 members who have rated Res-Care believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent and TSIF, both of whom are ranked in the top 2% of our community.
Only two days ago, mrindependent brought the stock's recent beating to our community's attention:
[T]he share price of [Res-Care] has been pummeled among declining earnings estimates and concern about reimbursement rates for the company's services. Although the company's problems are significant, the sell-off has been too extreme. This company is profitable and solvent. .... At 0.7 times book value and 8 times forward earnings, this company is a bargain.
In a pitch from two weeks earlier, TSIF elaborates:
While a reduced outlook should be negative news, Res-Care was punished by nearly 20%. ... Overall, however, the reaction sent Res-Care to a six year low. While some of the contracts may be resolved this quarter, even if Res-Care doesn't continue with its slow growth it still maintains a strong cash flow and is trading well below book value. The market's reaction treats Res-Care, a profitable company, much worse than other similar companies in the health care industry. The Job Corps and training divisions should be receiving more support from the government in this economy, not less. I'm hopeful for a rebound on this one.
What do you think about Res-Care, 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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