Stock on Watch: LifePoint Health, Inc. (LPNT)

Company Profile:

LifePoint Health, Inc., through its subsidiaries, owns and operates community hospitals, regional health systems, physician practices, outpatient centers, and post-acute facilities in the United States. Its hospitals offer a range of medical and surgical services, such as general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation, and pediatric services, as well as specialized services, including open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. As of December 31, 2016, the company operated 72 hospital campuses, including 9,424 licensed beds in 22 states. The company was formerly known as LifePoint Hospitals, Inc. and changed its name to LifePoint Health, Inc. in May 2015. LifePoint Health, Inc. was founded in 1997 and is based in Brentwood, Tennessee.

Recent News:

For the first quarter ended March 31, 2017, it reported consolidated revenues were $1,630.2 million, up 3.1% from $1,580.7 million for the same period last year. Net income was $64.0 million, up $40.1 million, compared with net income of $23.9 million for the same period last year.

For the fourth quarter ended December 31, 2016, it reported consolidated revenues were $1,605.2 million, up 17.1% from $1,370.7 million for the same period last year, primarily as a result of the Company’s recent acquisitions. Net income was $46.6 million, down $8.8 million, or 16.1%, compared with net income of $55.4 million for the same period last year.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

LPNT’s strengths can be seen in its better growth compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 47.74 with positive bias. We rate LifePoint Health, Inc. (LPNT) a STRONG BUY.