Extendicare (TSX:EXE) stock rose 1.03% on July 29. The company operates through six segments which include long-term care, retirement living, and home health care. Shares have climbed 41% in 2019 so far.
This an exciting company as its growth will be favourably impacted by an aging population. For the first time in history, seniors outnumbered youths in Canada in the 2017 census.
This gap will widen as we move further into the middle of this century. There will be increased demand for the kind of care facilities that Extendicare offers.
In the first quarter, Extendicare reported Net Operating Income (NOI) of $30.4 million which was up 3.6% from the prior year.
The company is set to release its second quarter 2019 results on August 14. The stock last paid out a monthly dividend of $0.04 per share. This represents a nice 5.4% yield, so there is value here for income investors.
Is the stock worth grabbing ahead of this report?
Extendicare stock currently boasts a price-to-earnings ratio of 46, putting it at a pricey level relative to industry peers. Shares had an RSI of 74 as of close on July 29.
This puts the stock in technically overbought territory at the time of this writing. The long term trends are working in Extendicare’s favour, but value investors may want to wait for a more attractive entry point.
