Almost Family's a Buy, with Strong Revenues and Earnings Growth

With a very nice 5 day run on high volume, Almost Family Inc (AFAM) still looks like a buy. With revenue growth close to 50% and earnings growth at 95% year over year for the current quarter, the stock at a 26 price/earnings is a good purchase.

Volume

AFAM has averaged 190,000 shares traded a day over the last three months. But during the current week of strong upward movement, the stock has seen volume numbers ranging from 283,000 up to 653,000. In fact four of the last five days, the volume traded has been over 500,000 shares a day. The strong demand for the shares is an indication of institutional buying in many cases.

Earnings Forecast

The home nursing provider soundly beat its last earnings estimate by 32% and analysts have bumped up all their expectations for the company in current quarter and the following quarter in December of 2008. The company has beaten estimates three quarters in a row and recently purchased a provider of similar services operating in New Jersey, Pennsylvania, and Connecticut.

The Trade

Almost Family Inc is considered a small-cap as its current market cap is under $360 million so don't be too aggressive. But adding a smaller position in the quickly growing company should be profitable until there is a change in their earnings or results.

Stock position: Long.