Envision Healthcare Corporation EVHC, a provider of physician-led outsourced medical services to consumers, hospitals and healthcare systems in the U.S., recently announced the acquisition of Gwinnett Emergency Specialists, P.C.

Stock Performance

The price performance of Envision Healthcare was unfavorable in the last three months. The stock lost 21.03%, underperforming the Zacks classified Medical-Outpatient/ Home Care sub-industry’s loss of only 2.42%.

The estimate revision trend for the current year has been unfavorable. Two estimates have moved south in the last two months against no movement in the opposite direction. This justifies the stock’s Zacks Rank #5 (Strong Sell).

Coming back to the news, the acquisition is a prudent move on the part of the company, which enabled Envison Healthcare to control eight hospital-based emergency medicine departments in North Georgia, including the Atlanta metropolitan area.

Gwinnett Emergency consists of more than 40 physicians and 30 advanced practitioners. They provide patient care at two hospitals in Gwinnett County: Gwinnett Medical Center Lawrenceville, a Level II Trauma Center; and Gwinnett Medical Center Duluth. Average patient volume for the group exceeds 150,000 annual patient encounters. Gwinnett Emergency has provided service at the Lawrenceville hospital since the physician group was founded in 1991.

Headquartered in Greenwood Village, CO, Envision Healthcare is a leading provider of physician-led services, ambulatory surgery services, post-acute care and medical transportation. Physician-led services are provided at more than 780 hospitals in 45 states and the District of Columbia. The company owns and operates 260 surgery centers and one surgical hospital in 35 states and the District of Columbia.

Key Picks

Better-ranked stocks in the broader medical sector include Luminex Corporation LMNX, Hologic, Inc. HOLX and Inogen Inc INGN. Notably, Inogen and Luminex sport a Zacks Rank #1 (Strong Buy), while Hologic carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inogen promises a long-term adjusted earnings growth of almost 17.5%. The stock returned 81.5% over the last one year.

Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock has added roughly 6.4% over the last three months.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 29.2%.

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