Andy Batts
Long only, value, growth, momentum

LHC Group: Near-Term Headwinds Offering Buying Opportunity With Upside Potential

LHC Group (NASDAQ:LHCG) is a financially sound national provider of post-acute care, offering quality and cost-effective healthcare to patients within the comfort of their home. After a more than 12% drop last Friday, the shares of LHC Group are trading at a market cap of $328.98 million, which is close to the company's book value of $274.59 million. In this article I'll explain why the recent drop in the share price offers an incredible buying opportunity for medium-term investors, with a moderate risk-tolerance level. I believe the stock has very limited downside of not more than 5% from the current level against an approximately 40% potential upside within the next year.

Why Does This Opportunity Exist?

LHC Group...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details