Why Acadia Healthcare Company, Inc. (ACHC) Went Down On Friday?

We recently published a list of 10 Battered Stocks on Friday. In this article, we are going to take a look at where Acadia Healthcare Company, Inc. (NASDAQ:ACHC) stands against other battered stocks on Friday.

The stock market ended the trading week in the green territory, with all major indices gaining more than 1 percent after slipping into the negative territory at intra-day trading following a clash between US President Donald Trump and Ukrainian leader Volodymyr Zelensky at the White House.

Following the televised meeting, the two leaders concluded the encounter without a deal for joint development of mineral resources.

The Dow Jones jumped by 1.39 percent, the S&P 500 surged by 1.59 percent, and the Nasdaq soared by 1.63 percent.

Ten companies bucked a broader market optimism, with three stocks heavily battered by disappointing earnings results, losing more than 20 percent in their valuations.

In this article, we have detailed the reasons behind their weak performance.

To come up with Friday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A healthcare professional discussing a treatment plan with a patient in an outpatient clinic.

Acadia Healthcare Company, Inc. (NASDAQ:ACHC)

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) fell for a third consecutive day on Friday to hit an all-time low of $29.79 before gaining momentum towards the trading session to end the day just down 25.53 percent at $29.98 apiece.

Investors continued to sell off following the release of its fourth quarter earnings performance, where net income fell 44 percent to $33.5 million from $59.7 million in the same period a year earlier, while revenues increased by 4.2 percent to $774 million from $742.8 million year-on-year.

Acadia Healthcare Company, Inc. (NASDAQ:ACHC), however, swung to a net income of $264 million last year from a net loss of $15.66 million in 2023, while revenues grew 8.6 percent to $1.69 billion from $1.57 billion.

For this year, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) expects revenues to settle between $3.3 billion and $3.4 billion, with adjusted earnings per share ranging from $2.5 to $2.8.

Overall, ACHC ranks 3rd on our list of battered stocks on Friday. While we acknowledge the potential of ACHC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACHC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.