← Quality Momentum

QM · rank #15 · 2026-10-26

PACS

NYSE · $7.54B (USD)

SignalSell
verdict · CAUTION

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+195.42%
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.
$7.54B
Anchor (recent)
Close on 2026-09-25
$41.30
Anchor (far)
Close on 2025-09-26
$13.98

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 runs a rapidly expanding multi-state post-acute and skilled-nursing platform, serving 33,400+ patients daily across 21 states and scaling via acquisitions and occupancy/skilled-mix improvement.

Rationale

The screen is supported by strong quality-plus-momentum traits: 12-1 momentum is strong, ROE is high at 27.9%, margins are positive, Q2 revenue/EBITDA beat and full-year guidance was raised, all consistent with an accelerating operator.

Material risks

  • 1Ongoing DOJ subpoenas/investigations into False Claims Act, Anti-Kickback, Medicare billing and related issues could impair earnings quality, cash flow, and multiple expansion if they escalate.
  • 2The acquisition-led model can dilute operating quality through integration, lease and financing obligations, and reimbursement/labor pressure if newly added facilities do not sustain occupancy and skilled mix.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Caution