As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the senior health, home health & hospice industry, including BrightSpring Health Services (NASDAQ: BTSG) and its peers.

The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.

The 7 senior health, home health & hospice stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2%.

In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.

Best Q2: BrightSpring Health Services (NASDAQ: BTSG)

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

BrightSpring Health Services reported revenues of $3.15 billion, up 29.1% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.

“Our focus on delivering high quality care, operational excellence, and investment in best practices across prioritized markets and services continues to underpin strong overall business performance,” said Jon Rousseau, Chairman, President, and Chief Executive Officer of the Company.

BrightSpring Health Services scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 18.6% since reporting and currently trades at $24.50.

Is now the time to buy BrightSpring Health Services? Access our full analysis of the earnings results here, it’s free.

Option Care Health (NASDAQ: OPCH)

With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ: OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.

Option Care Health reported revenues of $1.42 billion, up 15.4% year on year, outperforming analysts’ expectations by 4.6%. The business had a strong quarter with full-year revenue guidance meeting analysts’ expectations and a beat of analysts’ EPS estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.2% since reporting. It currently trades at $28.90.

Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Chemed (NYSE: CHE)

With a unique business model combining end-of-life care and household services, Chemed (NYSE: CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.

Chemed reported revenues of $618.8 million, up 3.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

The stock is flat since the results and currently trades at $465.

Read our full analysis of Chemed’s results here.

Brookdale (NYSE: BKD)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $812.9 million, up 4.6% year on year. This print lagged analysts' expectations by 0.6%. It was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates.

Brookdale had the weakest performance against analyst estimates among its peers. The stock is down 3% since reporting and currently trades at $7.56.

Read our full, actionable report on Brookdale here, it’s free.

AdaptHealth (NASDAQ: AHCO)

With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.

AdaptHealth reported revenues of $800.4 million, flat year on year. This result met analysts’ expectations. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.

AdaptHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $9.15.

Read our full, actionable report on AdaptHealth here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.