IBD Stock of the Day: Option Care Health Breaks Out as Growth Accelerates

Health Care Option

Health Care Option





ITN Stock Analysis

  • Exit from the base buy point of 31.18 cups, with an early entry of 30.41
  • New profit, accelerating sales growth
  • The relative strength line has been hitting new highs for weeks

composite score

Industry group ranking

Emerging model


* No real-time data. All data displayed was captured as of 3:00 p.m. EDT on 07/15/2022.

Medical service provider Health Care Option (OPCH) is Friday’s IBD stock as OPCH stock jumped above several buy points.


Option Care Health specializes in infusion therapy treatments for acute and chronic conditions ranging from heart disease to neurological disorders. It is the nation’s largest independent provider of in-home or alternate location services, with more than 225,000 patients and more than 150 locations across the United States. OPCH’s services are available in all 50 states through its network of pharmacies, partner hospitals and healthcare providers. suppliers.

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Profitable Care Option

OPCH became profitable in the second quarter of last year, while sales growth accelerated in the last two quarters. And its generating more cash from operations. OPCH recorded cash flow of $32.7 million in the first quarter to bring its total balance to $145.6 million.

“Despite a strong start to the year and continued pandemic disruptions, the Option Care Health team has executed exceptional actions to deliver high quality patient care and strong financial results,” CEO John Rademacher said in a statement. the announcement of the results. “Overall, we expect 2022 to be a productive year as we continue to navigate a challenging environment and invest for future growth.”

For 2022, Option Care projects revenue of $3.75 billion to $3.9 billion and operating cash flow of “at least” $230 million.

Analysts forecast Option Care’s earnings growth of 22% to 94 cents per share in 2022, with EPS up 24% in 2023.

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Analysis of OPCH stocks

Option Care Health jumped 7.7% to 31.58 in heavy volume in Friday’s stock trading. OPCH stock cleared a cup base with a buy point of 31.18. However, he was already exploitable earlier in the session as he passed a not quite handful, offering an entry of 30.41.

The relative strength line, the blue line in the provided chart, has been hitting new highs for several weeks. This reflects the strong outperformance of the OPCH share compared to the S&P 500 index.

Option Care has an EPS rating of 76, which is just short of the CAN SLIM target of 80. But that should improve over time as the company has a longer track record of sustained and rising earnings.

OPCH stock has a composite rating of 97 out of a possible 99, which combines a number of key technical indicators into one easy-to-read score.

Option Care Health stock recently joined the IBD 50 list.

Options earnings report looms

Investors should be aware of the next earnings report on July 27. Although expectations are positive, the market the uptrend is under pressure and stocks require more attention than in a bull market.

A loss in earnings could put a bend in the breakout in OPCH stock. It is therefore important for investors to remember strategies to know when it is time to take profits and cut losses.

You can follow Harrison Miller for more stock info and updates on Twitter. @IBD_Harrison


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