Pennant Group Stock Valuation: Undervalued After Recent Surge and Regulatory Updates

Pennant Group (PNTG) has received a boost from Truist Securities' upgrade and easing of 2026 Medicare concerns. The stock has experienced a 15% 30-day share price return and a 19% 90-day gain. Analyst price targets imply meaningful upside, but the question remains whether recent gains leave room for further growth or if markets have already factored it in. The narrative leans towards underappreciated growth potential, with accelerating demographic trends supporting durable revenue growth, but regulatory pushback and labor shortages pose risks. The earnings ratio suggests the stock is stretched.