• BrightSprings Health Services (BTSG) demonstrates exceptional price momentum, trading at new all-time highs.
• Shares are up more than 150% over the past 52 weeks.
• BTSG maintains a 100% “Buy” technical opinion from Barchart.
• Despite strong sentiment and technicals, its valuation remains a concern with a trailing P/E of 46.13x .

Today’s Featured Stock

Valued at $10.16 billion, BrightSprings Health Services (BTSG) is the parent company of healthcare service lines that provide complementary home- and community-based pharmacy and provider health solutions for complex populations in need of specialized and/or chronic care. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. BTSG checks those boxes. The Trend Seeker issued a new “Buy” signal on March 17. Since then, the stock has gained 28.66%.

Barchart Technical Indicators for BrightSprings Health Services

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

BrightSprings scored an all-time high of $54.68 on May 1.

• BrightSprings has a Weighted Alpha of +156.66.
• BTSG has a 100% “Buy” opinion from Barchart.
• The stock has gained 155.74% over the past 52 weeks.
• BrightSprings has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $54.70 with a 50-day moving average of $44.22.
• BTSG has made 10 new highs and gained 25.5% over the past month.
• Relative Strength Index (RSI) is at 76.01.
• There’s a technical support level around $52.37.

Don’t Forget the Fundamentals

• $10.16 billion market capitalization.
• 46.13x trailing price-earnings ratio.
• Analysts project revenue to grow 15.68% this year and another 13.23% next year.
• Earnings are estimated to increase 62.97% this year and an additional 23.58% next year.

Analyst and Investor Sentiment on BrightSprings Health Services

• The Wall Street analysts followed by Barchart give the stock 16 “Strong Buy” opinions with price targets between $48 and $60.
• Value Line ranks the stock “Above Average.”
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is 42% overvalued with a fair value of $36.98.
• 2,490 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy” and rates it the best healthcare stock.
• Short interest is 5.50% of the float with 5.90 days to cover the float.

The Bottom Line on BrightSprings Health Services

Healthcare is one of the sectors predicted to have the best employment growth figures, and some think this is the best healthcare stock. I only have a problem with the high valuation.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.