CHE Should I Buy
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CHE is not a strong buy right now for a beginner long-term investor with $50,000-$100,000 who is unwilling to wait for a better entry. The business has some constructive long-term qualities and analyst upside remains positive, but the current technical setup is mixed-to-weak, hedge funds are selling, and there is no strong proprietary buy signal today. I would wait rather than buy immediately.
CHE is trading at 417.46, below the prior close of 420.87 and slightly under the S1 support area at 418.99, which shows short-term weakness. The MACD histogram is -1.647 and negatively expanding, indicating downside momentum is still active. RSI_6 at 34.811 is near oversold but not yet a strong reversal signal. The moving averages remain bullish with SMA_5 > SMA_20 > SMA_200, so the longer-term trend is still intact. Overall, the chart is mixed: long-term trend is supportive, but near-term momentum has weakened and price is sitting just below support.
No detailed financial snapshot was available, but the latest quarter appears strong. Analyst commentary says Chemed delivered a solid Q1 with VITAS posting strong census growth and margin outperformance, which drove consolidated EBITDA and EPS above consensus. RBC also noted that management raised guidance after the quarter, which is a positive sign for current operating momentum. The latest quarter season was Q1.
Analyst sentiment is constructive but not uniformly bullish. RBC Capital raised its target to $436 and kept a Sector Perform rating, citing a strong Q1 and guidance raise. Oppenheimer is more bullish, maintaining Outperform with a $500 target and recommending it as a long-term buyer, driven by potential value unlock from separating the businesses. Overall, Wall Street sees upside, but the average stance is still mixed rather than strongly bullish.
