10 Cheap New Stocks To Buy Right Now

3. PACS Group Inc. (NYSE:PACS)

Number of Hedge Fund Holders: 32

Forward P/E ratio as of January 25: 7.5

Market Capitalization: $2.21 billion

PACS Group Inc. (NYSE:PACS) provides skilled nursing and senior care services in the US. It operates a network of facilities, which include skilled nursing facilities, assisted living communities, and independent living options.

The company is aggressively expanding its footprint through strategic acquisitions in the post-acute care sector. In November 2024, it acquired 8 facilities in Pennsylvania, which added 1,199 beds and marked its entry into the state. Subsequently, in December 2024, the company acquired 11 facilities in Tennessee, which added 1,310 beds and further expanded its geographic reach to 17 states. PACS Group Inc. (NYSE:PACS) employs a flexible acquisition strategy and uses both lease and purchase models to capitalize on diverse market opportunities. It emphasizes its strong operational performance, with high-quality ratings and above-average occupancy rates across its facilities.

Strategic expansions and acquisitions are expected to drive revenue growth for the company and increase its market share in the post-acute care sector. However, recent analyst reports on the company have seen mixed revisions. Macquarie lowered its price target to $24 from $42 while maintaining an Outperform rating. Truist Financial decreased its target to $32 from $46 but also maintained a Buy rating.