Boston, MA 04/08/2014 (wallstreetpr) – The Providence Service Corporation (NASDAQ:PRSC) is a stock worth considering for investors looking for better ways to energize their portfolio. You have probably read about the excitement in the energy sector where companies in LPG and LNG export business are being touted. Bullish sentiments are also growing around clean energy stocks. But in this situation, it is easy to miss out on opportunities in other sectors.
In the healthcare providers industry, good things are happing and Providence looks like a safe and promising entry point into the industry. The company reveals a lot of strengths which should be interesting to investors.
Performance highlight
The fact that the healthcare services and provider industry is exciting is not enough. The Providence Service Corporation (NASDAQ:PRSC) has its own strengths worth taking note of. The company has seen its stock price growing decently in the past year and the trend is expected to continue. Over the past year, stock price increased more than 125 percent, exceeding the S&P 500 Index and the industry average. Despite having enjoyed a nice rally already, the stock is full of energy to continue gaining.
The gain in the stock has not been for nothing. The company has shown a positive earnings pattern in the past two years, and this is expected to continue. In the most recent quarter, earnings per share increased by 9.1 percent over the comparable quarter a year ago. The company’s net income is also compelling, as it exceeded the S&P 500 Index performance in the most recent quarter, having jumped more than 17 percent from the same quarter a year prior.
With revenue increasing and expenses being curbed, Providence Service Corporation (NASDAQ:PRSC) boasts strong cash flow, which increased by more than 275 percent in the most recent quarter compared to the same quarter one year ago. Also, the company’s debt management has been quite successful, meaning that meeting short-term cash needs cannot be a problem.
Recommended buy
Owing to the strength in the stock, analysts recommend Providence Service Corporation (NASDAQ:PRSC) stock as a buy.
