CHE Should I Buy
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Chemed Corp (CHE) is not a good buy for a beginner investor with a long-term strategy at this time. The stock is facing significant headwinds, including declining financial performance, bearish technical indicators, and a lack of positive catalysts. Analysts have downgraded the stock, and hedge funds are selling. While there is some long-term potential in the company's portfolio, the current challenges in its Roto-Rooter segment and overall financial performance make it unsuitable for immediate investment.
The technical indicators for CHE are bearish. The MACD is negative (-2.685) and contracting, the RSI is neutral at 22.031, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key pivot levels, with support at 381.769 and resistance at 395.505.
Vitas' momentum in Florida shows some promise, and analysts suggest potential long-term value creation through a breakup of the company.
Hedge funds are selling the stock, and analysts have downgraded their ratings and price targets significantly.
In Q4 2025, revenue dropped slightly by -0.10% YoY to $639.3M, net income fell by -15.02% YoY to $76.75M, EPS declined by -8.96% YoY to 5.49, and gross margin decreased by -4.22% YoY to 32.67%.
Analysts have downgraded the stock, citing challenges in the Roto-Rooter segment and a disappointing Q4 performance. Price targets have been lowered significantly, with the most recent targets ranging from $400 to $500, down from previous highs of $550-$595.
