10 Best Up and Coming Stocks To Buy According to Analysts

3. PACS Group Inc. (NYSE:PACS)

Average Upside Potential as of November 26: 141.84%

Number of Hedge Fund Holders: 32

PACS Group Inc. (NYSE:PACS) is a healthcare company that operates skilled nursing facilities and assisted living services across the US. It focuses on providing post-acute care, including rehabilitation and long-term care. It makes money by leasing facilities and receiving payments from insurance companies based on the number of residents and services provided.

It has expanded its operations into Pennsylvania recently. It acquired 8 skilled nursing facilities located in the western part of the state, including Pittsburgh, Bedford, Bethel Park, Monroeville, and McMurray. These facilities collectively offer 1,199 skilled nursing beds. This acquisition marks a significant milestone for the company, as it expands its footprint into a new state and strengthens its position as a national provider of post-acute care services. PACS Group Inc. (NYSE:PACS) has a strong track record of improving occupancy rates to 94% or higher within 18 months of taking over a facility.

Financially, the company has shown impressive growth. It generated a revenue of $981.85 million in Q3 2024 alone. The SNF industry is expected to consolidate, and PACS Group Inc. (NYSE:PACS) is well-positioned to benefit from this trend. Its facilities are located in urban areas, which helps to mitigate potential staffing challenges. Additionally, the growing number of elderly people and the increasing prevalence of dementia are driving demand for SNFs.