Aveanna Healthcare Holdings Inc. (AVAH) Hits Fresh High: Is There Still Room to Run?

Shares of Aveanna Healthcare (AVAH) have been strong performers lately, with the stock up 14.3% over the past month. The stock hit a new 52-week high of $14.54 in the previous session. Aveanna has gained 72.3% since the start of the year compared to the 0.4% move for the Zacks Medical sector and the 22.1% return for the Zacks Medical - Outpatient and Home Healthcare industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 13, 2026, Aveanna reported EPS of $0.22 versus consensus estimate of $0.17.

For the current fiscal year, Aveanna is expected to post earnings of $0.8 per share on $2.69 in revenues. This represents a 33.33% change in EPS on a 10.61% change in revenues. For the next fiscal year, the company is expected to earn $0.9 per share on $2.89 in revenues. This represents a year-over-year change of 11.88% and 7.45%, respectively.

Valuation Metrics

Aveanna may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Aveanna has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 17.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.6X. On a trailing cash flow basis, the stock currently trades at 20.4X versus its peer group's average of 16.8X. Additionally, the stock has a PEG ratio of 0.83. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Aveanna currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Aveanna passes the test. Thus, it seems as though Aveanna shares could still be poised for more gains ahead.

How Does AVAH Stack Up to the Competition?

Shares of AVAH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is LifeStance Health Group, Inc. (LFST). LFST has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.

Earnings were strong last quarter. LifeStance Health Group, Inc. beat our consensus estimate by 100.00%, and for the current fiscal year, LFST is expected to post earnings of $0.16 per share on revenue of $1.7 billion.

Shares of LifeStance Health Group, Inc. have gained 4.4% over the past month, and currently trade at a forward P/E of 81.06X and a P/CF of 77.11X.

The Medical - Outpatient and Home Healthcare industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AVAH and LFST, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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