Option Care Health Stock Rides A 5-Day Winning Streak To A 38% Gain
Shares of Option Care Health (OPCH) have closed higher in each of the last 5 sessions, a cumulative gain of 37.9%. That added about $1.3 billion to the company’s market value, which now stands at about $4.7 billion. The stock closed at $31.01 on Wednesday, October 7, 15.3% below its 52-week high of $36.59 and 58.9% above its low of $19.52.
OPCH Versus The S&P 500
Returns for OPCH and the S&P 500 over the streak and the periods around it, all ending Wednesday, October 7 and including dividends:
| Return Period | OPCH | S&P 500 |
|---|---|---|
| 1 Day | 0.0% | -0.2% |
| 5 Days (Current Streak) | 37.9% | 2.0% |
| 1 Month (21 Trading Days) | 30.6% | 1.8% |
| 3 Months (63 Trading Days) | 43.1% | 3.7% |
| Year To Date | -2.7% | 15.0% |
| 1 Year (252 Trading Days) | 13.5% | 17.1% |
How The Streak Compares With The Market
The market explains little of this: the S&P 500 gained 2.0% over the same 5 sessions, including dividends, against Option Care Health’s +37.9%. Over the past three months the stock is up 43.1%, a window that includes the streak; over the other 58 sessions of that window it was up 3.8%.
Do The Fundamentals Support The Run?
On the fundamentals, revenue grew 5.9% over the last twelve months, against a median of 8.1% for S&P 500 Health Care stocks; its operating margin is 5.9%, versus a median of 17.6%; and the stock trades at 22.6 times trailing earnings against a median of 26.9. The read is mixed: a multiple below the median on one side, revenue growth below the median and margins below the median on the other.
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Momentum Is A Tailwind, Not A Plan
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