QM · rank #15 · 2026-10-22
PACS
NYSE · $7.56B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +210.85% |
|---|---|
| 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 2026-09-22 | $41.53 |
| Anchor (far) Close on 2025-09-22 | $13.36 |
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 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
The quality_momentum signal is reinforced by concrete fundamentals — 28% trailing ROE, Q2 net income up ~50% YoY, raised full-year EBITDA guidance implying ~29% growth, and a clean balance sheet with zero revolver draw — suggesting the momentum is earnings-driven rather than sentiment-only.
Material risks
- 1Reimbursement compression or CMS policy shifts could rapidly erode the operating leverage underpinning the EBITDA acceleration, since PACS has no proprietary IP or sole-source position to buffer a payer-mix deterioration.
- 2Integration execution on the 34-facility Eduro deal (14 facilities still pending close) and a labor-cost spike could stall cohort maturation and cause the next guidance raise to reverse, breaking the momentum leg of the thesis.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.