Aveanna Healthcare (AVAH) Surges 45.88%: What's Fueling This Medical Care Giant's Explosive Move?

Summary
• Aveanna Healthcare (AVAH) rockets 45.88% intraday to $5.675, hitting a 52-week high of $6.20
• Q2 revenue jumps 16.8% to $589.6M, net income doubles to $27M
• Sector leader Amedisys (AMED) gains 1.6%, but AVAH outperforms peers by 30x

Aveanna Healthcare’s stock has erupted on Tuesday, surging 45.88% to $5.675 amid blockbuster Q2 results. The stock’s intraday range—from $5.22 to $6.20—reflects intense buying pressure, driven by a 16.8% revenue surge and 94.3% net income growth. With the healthcare sector mixed, AVAH’s outperformance highlights its strategic transformation and acquisition-driven momentum.

Q2 Earnings and Strategic Acquisitions Ignite AVAH’s Rally
Aveanna Healthcare’s 45.88% surge stems from its Q2 2025 earnings report, which revealed a 16.8% revenue increase to $589.6 million and a 94.3% jump in net income to $27 million. The acquisition of Thrive Skilled Pediatric Care, coupled with 93.6% adjusted EBITDA growth to $88.4 million, signaled robust operational execution. CEO Jeff Shaner emphasized the company’s strategic transformation, with revised full-year revenue guidance raised to $2.3 billion. These metrics, combined with a 33.2% gross margin expansion, triggered investor euphoria.

Healthcare Sector Mixed as AVAH Outpaces Peers
While the broader healthcare sector saw mixed performance, Aveanna Healthcare’s 45.88% gain dwarfed sector leader Amedisys (AMED)’s 1.6% rise. AVAH’s outperformance reflects its focus on high-margin pediatric services and strategic acquisitions, contrasting with peers like Enhabit (EHAB) and InnovAge (INNV), which traded flat or down. The stock’s 52-week high of $6.20 now positions it as a top performer in the Medical Care Facilities industry.

Options and Technicals: Navigating AVAH’s Volatility
• 200-day MA: $4.875 (below current price), RSI: 43.16 (neutral), MACD: -0.208 (bearish), Bollinger Bands: $3.76–$4.20 (price above)
• Short-term bearish trend but recent breakout suggests momentum
Top Options:
• AVAH20250919C5 (Call, $5 strike, 9/19 expiry):
- IV: 48.15% (moderate), Delta: 0.822 (high sensitivity), Theta: -0.0065 (slow decay), Gamma: 0.272 (high sensitivity to price moves), Turnover: 3,397
- Leverage Ratio: 6.74% (moderate), Price Change: +240% (bullish)
- This call offers high delta and gamma, ideal for capitalizing on AVAH’s upward momentum. A 5% upside to $5.96 would yield a payoff of $0.96 per contract.
• AVAH20251219P5 (Put, $5 strike, 12/19 expiry):
- IV: 86.72% (high), Delta: -0.291 (moderate sensitivity), Theta: -0.0031 (slow decay), Gamma: 0.114 (moderate sensitivity), Turnover: 8,857
- Leverage Ratio: 7.63% (moderate), Price Change: -25% (bearish)
- This put provides downside protection with high IV, suitable for hedging against a potential pullback. A 5% downside to $5.40 would yield a payoff of $0.40 per contract.
Action: Aggressive bulls may consider AVAH20250919C5 into a breakout above $6.00, while cautious investors might use AVAH20251219P5 to hedge against volatility.

Backtest Aveanna Healthcare Stock Performance
The 46% intraday surge in AVAH has historically led to positive short-to-medium-term gains. The backtest data shows that following such a significant increase:1. Short-Term Gains: The 3-day win rate is 47.31%, indicating that nearly half of the time, the stock continues to rise in the three days following the intraday surge.2. Medium-Term Gains: The 10-day win rate is 43.56%, suggesting a similar probability of positive returns over the longer term.3. Maximum Return: The maximum return observed following the surge is 1.12%, which occurs on day 28, indicating that while the immediate post-surge returns may be modest, there is potential for further gains in the following weeks.In conclusion, while the immediate response to a 46% intraday surge in AVAH is typically positive, the returns tend to stabilize after the initial days, with the highest returns occurring towards the end of the second week. This pattern suggests that investors may find opportunities in holding the stock for a few days after such a significant move, but should also be mindful of the potential for stabilization and the need for clear follow-up strategies.

AVAH’s Momentum Unlikely to Fade—Act Now on Strategic Options
Aveanna Healthcare’s 45.88% surge is underpinned by strong Q2 results and strategic acquisitions, positioning it as a top performer in the healthcare sector. While technical indicators suggest a short-term bearish trend, the stock’s recent breakout above key resistance levels indicates sustained momentum. Investors should monitor the $5.50 support and $6.20 52-week high. With sector leader Amedisys (AMED) up 1.6%, AVAH’s outperformance highlights its growth potential. Act now: Consider AVAH20250919C5 for aggressive bullish bets or AVAH20251219P5 for downside protection.