Zacks Industry Outlook Highlights Quest Diagnostics, DaVita, Option Care Health and Addus HomeCare
For Immediate Release
Chicago, IL – March 18, 2026 – Today, Zacks Equity Research discusses Quest Diagnostics Inc.DGX-- DGX, DaVita Inc.DVA-- DVA, Option CareOPCH-- Health, Inc. OPCH and Addus HomeCare Corp.ADUS-- ADUS.
Industry: Outpatient/Home Health Services
The Zacks Medical – Outpatient and Home Healthcare industry is rapidly shifting toward digital modes of care delivery. In recent years, there has been a marked rise in demand for telemedicine platforms and artificial intelligence (AI)-powered medical solutions. A growing global aging population is prompting many healthcare providers — traditionally less focused on technology — to embrace tech-enabled offerings to stay competitive.
Per Grand View Research, the global home healthcare market was valued at $416.4 billion in 2024 and is projected to reach $747.7 billion by 2030, expanding at a CAGR of around 10.2%. Rising healthcare expenses are also a major factor driving MedTech companies to speed up their transition to digital healthcare.
Rising dependence on telehealth and AI is likely to help the industry thrive in the near term. Quest Diagnostics Inc., DaVita Inc., Option Care Health, Inc. and Addus HomeCare Corp. are likely to gain from the prospects.
Industry Description
The industry includes companies delivering ambulatory care in outpatient settings or at home, using advanced technologies for diagnosis, treatment and rehabilitation. Key players operate HMO medical centers, dialysis units and other outpatient facilities. After navigating pandemic-related challenges, both payers and providers are witnessing steady growth, supported by ongoing service innovation. This strengthens optimism for the coming years, although persistent consumer price inflation remains a concern for the outlook.
The pandemic also accelerated innovation across the healthcare system, creating opportunities for further scaling. In addition, the continued shift toward value-based care models and the growing integration of technology across healthcare are expected to support long-term industry growth.
Major Trends Shaping the Future of the Outpatient and Home Healthcare Industry
Aging Population: One of the primary drivers of the home healthcare market is the aging global population. As people live longer, there is a growing demand for services that cater to chronic disease management, rehabilitation and daily living assistance. The rising elderly population is expected to fuel the need for home healthcare services. As people age, they naturally tend to prefer healthcare services in the familiar and comfortable setting of their homes.
Cost Effectiveness:The primary advantage of outpatient clinics is cost-effectiveness. Outpatient medical care clinics do not retain patients for long hours (overnight) or charge exorbitantly. Modern-day outpatient clinics offer a broad spectrum of treatment and diagnostic options and even minor surgical procedures. Financial incentives like health plans and government program payment policies supporting services in lower-cost care settings have also been driving outpatient care.
Additionally, reduced rates of emergency room visits, readmissions and hospitalizations among patients receiving home-based care further increase healthcare savings by preventing expensive and preventable accidents.
AI's Dominant Role: AI has been a roaring success in healthcare, as it helps enhance patient care through remote monitoring. AI-powered medical devices continuously monitor patients' health conditions and transfer this data to healthcare providers. AI's analytical capabilities allow healthcare providers to respond quickly by analyzing patient data and detecting changes in patients' conditions. This further helps in timely intervention and reduces hospital readmissions. In addition, AI could make it much easier for caregivers, providers and patients to manage complex home care plans. By coordinating caregiver activities and automatically scheduling doctors' appointments, AI can streamline care management.
Technological Advancements: Virtual assistants and chatbots can help patients by answering questions about their care and connecting them with the information they need to make more informed decisions about their care. Increasingly, they will interface with electronic health records systems and be used to book and schedule appointments. They can also help patients stay compliant by reminding them to take medications or exercise.
Home healthcare can gain from the benefits provided by Medicare (and several other payers), which comprise a broad range of services that can be delivered in a patient's home, including post-operative and chronic wound care. Home healthcare has seen a surge in the utilization of the telehealth platform in response to the pandemic. With a rise in the elderly population and the increasing costs of in-person health care, the demand for home-based health care is on the rise. People with chronic illnesses and disabilities also require home-based care.
Staffing Shortages: Staffing shortages remain a structural challenge in U.S. healthcare, especially in home-based care. Persistent burnout, high turnover and skill gaps continue to strain workforce availability. Rising wage inflation and reliance on contract staff are increasing cost pressures, while reimbursement constraints limit hiring flexibility. Although technology adoption offers some relief, it cannot fully offset frontline workforce shortages, particularly in labor-intensive outpatient and home healthcare settings.
Zacks Industry Rank
The Zacks Medical - Outpatient and Home Healthcare industry falls within the broader Zacks Medical sector. It has a Zacks Industry Rank #192, which places it in the bottom 21% of nearly 250 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few outpatient home health stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation picture.
Industry's Stock Market Performance
The industry has outperformed its sector, but underperformed the S&P 500 Composite in the past year.
The industry has gained 6.4% over this period compared with the S&P 500's rise of 22.7% and the broader sector's decline of 2.6%.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), commonly used for valuing medical stocks, the industry is currently trading at 17.6X compared with the S&P 500's 21.6X and the sector's 20.1X.
Over the last five years, the industry has traded as high as 23.4X and as low as 16.1X, with the median being at 19.2X, as the charts below show.
4 Outpatient and Home Healthcare Stocks to Watch Now
DaVita: DaVita, a renowned global comprehensive kidney care provider, reported fourth-quarter 2025 results last month. The company registered an uptick in its top line and revenue per treatment during the quarter. The opening and acquisition of dialysis centers within the United States and overseas were also seen.
On the earnings call, management announced a strategic clinical partnership with home-care provider, Elara Caring, to establish an end-stage kidney disease-focused offering. DVADVA-- carries a Zacks Rank #2 (Buy). For this Denver, CO-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 3.4%. The same for earnings indicates an increase of 31.4%.
The company's earnings yield of 9.6% compares favorably with the industry's 5.3%.
Quest Diagnostics: Quest Diagnostics, a well-known diagnostic information services provider, announced Quest AI Companion, a new AI-powered chat feature that helps individuals analyze, understand and act on their Quest laboratory test results with their healthcare provider. Last month, Quest DiagnosticsDGX-- reported fourth-quarter 2025 results.
The performance reflected the company's ongoing strategic execution to deliver clinical innovations that fulfill customers' needs and to form collaborations supporting growth. DGXDGX-- carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. For this Secaucus, NJ-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 6.6%. The same for earnings indicates an increase of 7.6%.
The company's return on equity (ROE) of 15.6% compares favorably with the industry's 8.8%.
Option Care Health: Option Care Health is a renowned independent provider of home and alternate site infusion services. Last month, the company reported fourth-quarter 2025 results, wherein it recorded a robust uptick in its net revenues and bottom line. Per management, the company continued to make significant progress during 2025 against its key priorities to build a sustainable growth enterprise while navigating a dynamic industry environment. OPCHOPCH-- presently carries a Zacks Rank of 3. For this Bannockburn, IL-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 5.1%. The same for earnings indicates an increase of 8.7%.
The company's ROE of 18.6% compares favorably with the industry's 8.8%.
Addus HomeCare: Addus HomeCare, a key provider of home care services, announced its fourth-quarter 2025 results last month. The company registered a solid uptick in its net service revenues and both segmental revenues. Per management, ADUS' personal care business was a key contributor to its growth with an organic revenue increase supported by strong volumes as well as higher rates in certain key markets compared with the same period last year.
The operational improvements in the hospice care business resulted in a solid organic revenue growth supported by year-over-year increases in admissions, average daily census and revenue per patient day. ADUSADUS-- presently carries a Zacks Rank of 3. For this Frisco, TX-based company, the Zacks Consensus Estimate for 2026 revenues suggests growth of 6.8%. The same for earnings indicates an increase of 10.1%.
The company's ROE of 9.8% compares favorably with the industry's 8.8%.
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Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
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