QM · rank #16 · 2026-10-27
PACS
NYSE · $7.54B (USD)
The exact numbers the algorithm saw.
| 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 operates 355 skilled-nursing and post-acute facilities across multiple states, growing primarily through acquisition and operational turnaround of underperforming capacity.
Rationale
The momentum_12_1 of 1.95 is reinforced by concrete fundamental drivers — 49.8% net income growth, 34% adjusted EPS growth, raised full-year guidance, and a visible acquisition pipeline — making the price trend a reflection of accelerating earnings rather than pure sentiment rotation.
Material risks
- 1DOJ False Claims Act scrutiny (Paradise Valley and Providence) is the most acute thesis-breaker, as an adverse enforcement action could trigger repayments, operating restrictions, or reputational damage that directly invalidates the quality-momentum thesis mid-hold.
- 2The 40.4% Medicaid revenue exposure creates binary reimbursement risk — any state cost-containment measures or federal Medicaid restructuring could compress margins faster than acquisition-led volume growth can offset, pressuring the ROE and profit-margin signals that anchor the quality screen.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.