QM · rank #11 · 2026-09-10
PACS
NYSE · $6.73B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +295.69% |
|---|---|
| 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. | $6.73B |
| Anchor (recent) Close on 2026-08-11 | $44.95 |
| Anchor (far) Close on 2025-08-11 | $11.36 |
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 operates ~316 skilled nursing and assisted living facilities across 17 states, serving 30,000+ patients daily with a focus on post-acute and senior care reimbursed primarily through Medicare and Medicaid.
Rationale
Strong momentum (12-1 score of 2.96) is backed by genuine fundamental quality — 27.9% ROE, 184% YoY net income growth in Q1 2026, and consistent adjusted EPS beats — confirming the price signal is earnings-driven rather than sentiment-only.
Material risks
- 1California WQIP dependency is a concentrated earnings risk — Q1 2026 EBITDA included ~$16.3M from this single state program, and any rate cut or program restructuring would directly impair reported earnings and likely break the momentum signal.
- 2Labor cost inflation and staffing shortages across a 316-facility footprint can compress the thin 4.85% profit margin rapidly, as skilled nursing is structurally labor-intensive with limited pricing power outside of reimbursement rate cycles.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.