QM · rank #8 · 2026-10-21
PACS
NYSE · $7.56B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +251.38% |
|---|---|
| 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. | $7.56B |
| Anchor (recent) Close on 2026-09-21 | $42.06 |
| Anchor (far) Close on 2025-09-19 | $11.97 |
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 a large U.S. post-acute and skilled-nursing operator running 324 facilities with 35,631 beds, growing primarily through acquisition and cohort maturation rather than proprietary technology.
Rationale
Strong 12-1 momentum (2.51) is reinforced by concrete fundamental drivers — Q2 net income up 49.8%, EBITDA guidance raised ~29% YoY, and a 28% ROE — making the quality-momentum pairing credible rather than sentiment-only.
Material risks
- 1CMS reimbursement or state regulatory changes could rapidly compress the operating leverage that is driving the EBITDA acceleration, with no IP or sole-source position to buffer the impact.
- 2The 14 remaining Eduro facilities are excluded from guidance and unconfirmed; a stalled close or integration stumble on the broader 34-facility deal would directly undercut the growth narrative the momentum signal is pricing in.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.