A recent initial public offering, PACS Group is working its way toward a buy point of 42.25. After two breakout attempts, the IPO stock is finding support at the 10-day moving average. That's why PACS is today's selection for IBD 50 Growth Stocks To Watch.
What investors may find particularly impressive is that PACS stock doubled in price as of Oct. 16, six months after its debut. By comparison, tech titan Nvidia gained 58% during the same period.
The IPO stock gapped up on Aug. 13 after second-quarter results. Sales grew 29% to $981.9 million.
But the company announced a loss of 7 cents per share due to an increase in stock-based compensation expense of $90.9 million. For the full year, the company increased its sales outlook to $3.90 billion at the midpoint.
PACS buys and leases real estate for health care operations and has more than 240 post-acute health care facilities. Shares listed on the New York Stock Exchange on April 15 for an initial offering price of $21. So, the stock's trading history spans just two quarters.
IPO Stock Near All-Time High
The stock took a dive Sept. 5 when the company followed up its IPO with another stock offering of 14 million shares. But shares have rallied since to form the current base and touched an all-time high on Monday.
The growth outlook for post-acute hospital care is strong due to three factors, according to a report by Global Market Insights: chronic diseases, aging, and better technology to address both.
The IPO stock's best point is clearly its Relative Strength Rating of 95. That metric compares a stock's performance with the rest of the market over the last 12 months.
Its EPS Rating lags at 23 while the Composite Rating misses Investor's Business Daily's recommended threshold of 80 by two points.
Ownership stands strong among the company's management which holds 85% of the stock, according to the related information data found on IBD MarketSurge. Among mutual funds, the Columbia Small Cap Growth Fund (CMSCX) holds shares of PACS stock.
The IPO stock ranks third in the medical-long-term care group.
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