QM · rank #20 · 2026-09-04
BTSG
NASDAQ · $12.15B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +217.48% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +13.0% |
| Profit margin Net profit margin, trailing 12 months. | +2.5% |
| Market cap (USD) Size filter: > $500M required. | $12.15B |
| Anchor (recent) Close on 2026-08-05 | $63.02 |
| Anchor (far) Close on 2025-08-05 | $19.85 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
BrightSpring Health Services is a home- and community-based health services company integrating pharmacy solutions and clinical care for complex, high-need populations across the U.S.
Rationale
The momentum_12_1 signal of 2.17 is reinforced by a concrete fundamental catalyst — Q2 2026 revenue beat of ~6% versus consensus, a 44% EBITDA jump, raised full-year guidance, and net income surging from $9M to $87M year-over-year — giving the quality-momentum thesis a durable earnings-revision tailwind rather than pure price drift.
Material risks
- 1Reimbursement risk is the primary thesis-breaker — BrightSpring's ~$3.4B pharmacy revenue and provider services are heavily dependent on government program funding (Medicaid/Medicare), and any adverse rate or coverage change could compress margins faster than the current 5.3% EBITDA margin can absorb.
- 2At 2.15x net leverage post-paydown, the balance sheet is manageable but not fortress-grade; rapid revenue scaling (~23% YoY) amplifies execution risk in integrating pharmacy and provider operations after the Community Living divestiture, leaving little margin for operational missteps.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.