QM · rank #8 · 2026-09-04
PACS
NYSE · $7.00B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +299.65% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +27.9% |
| Profit margin Net profit margin, trailing 12 months. | +4.9% |
| Market cap (USD) Size filter: > $500M required. | $7.00B |
| Anchor (recent) Close on 2026-08-05 | $45.64 |
| Anchor (far) Close on 2025-08-05 | $11.42 |
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
PACS Group is one of the largest U.S. post-acute care holding companies, operating skilled nursing and rehabilitation facilities with a focus on occupancy and patient-mix optimization.
Rationale
Strong 12-1 momentum (2.997) is reinforced by a concrete fundamental catalyst — Q2 2026 adjusted EPS beat of ~15% above consensus, 24.6% adjusted EBITDA growth, and a raised full-year outlook — giving the quality-momentum signal a durable earnings-revision tailwind rather than pure sentiment.
Material risks
- 1Medicare/Medicaid reimbursement policy is the single most thesis-breaking risk — a post-acute payment rate cut or unfavorable value-based purchasing rule change could simultaneously compress margins and occupancy, directly unwinding the same-store improvement narrative driving both the momentum and the ROE.
- 2Vertical integration by hospital systems and payer-owned post-acute networks threatens to internalize skilled nursing volumes, eroding PACS's scale advantage without any proprietary technology or contractual moat to defend referral flows.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.