The Pennant Group is a healthcare services provider with 36% revenue growth and strong analyst consensus support, but a quality score of 3.4 out of 10 below the investable floor, an elevated put/call ratio of 6.00, and an asymmetry ratio of 0.74 that does not justify new risk at current prices near $33.
Thesis pillars
- Quality Below Investable Floor→Stable
- Strong Revenue Growth Rate→Stable
- Institutional Accumulation Signal→Stable
- +1 more pillar — see the Why tab for full reasoning
The Pennant Group, Inc. (PNTG) Stock Analysis
Healthcare · Medical Care Facilities
Sell if holding. Engine safety override at $39.91: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10. Specifically: Below-average business quality.
The Pennant Group is a U.S. healthcare services company operating home health, hospice, and senior living businesses across 16 states through 172 home health and hospice agencies and 63 senior living communities with 4,428 units as of December 31, 2025. The company derived 48.4%... Read more
Sell if holding. Engine safety override at $39.91: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About The Pennant Group, Inc.
About The Pennant Group, Inc.
The Pennant Group operated 172 home health and hospice agencies and 63 senior living communities with 4,428 total units across 16 states and Connecticut as of December 31, 2025, generating 48.4% of total revenue from Medicare and 61.5% from government payors combined. The company has grown its agency and community count by 341.0% and 39.1%, respectively, since 2016, driven by a decentralized "cluster" operating model inherited from its 2019 spin-off from The Ensign Group.
Pennant operates through two reportable segments: home health and hospice services, which include nursing, therapy, hospice, home care, and geriatric primary/palliative care delivered in patients' homes, and senior living services, comprising assisted living, independent living, and memory care communities. The home health and hospice segment leans heavily on Medicare, which supplied 87.0% of hospice-service revenue and 43.8% of home-health-service revenue in 2025, while senior living revenue comes primarily from private pay (65.9%) supplemented by Medicaid (34.1%). Pennant grows through a disciplined acquisition strategy targeting strategic and underperforming operations in the fragmented home health, hospice, and senior living markets, where the top ten home health operators hold only about 25% of the market and the top ten hospice operators hold about 20%. The company also pursues organic growth and joint ventures with health systems, supported by a centralized "Service Center" that provides compliance, IT, human resources, and accounting functions to its locally led operating subsidiaries.
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Pennant's hospice business carries a payor concentration that dwarfs its home health operations: Medicare supplied 87.0% of hospice-service revenue in 2025 versus 43.8% of home-health-service revenue, meaning any CMS rate cut, cap adjustment, or enhanced-oversight designation would fall disproportionately on the hospice segment. That risk is not hypothetical: CMS has progressively expanded a provisional period of enhanced prepayment review for newly enrolled, reactivated, or change-of-ownership hospice providers, growing the number of subject states to six as of January 2026, and hospice providers separately face annual per-beneficiary Medicare caps requiring repayment of amounts received above the cap. The 2025 One Big Beautiful Bill Act may also reduce federal matching funds for state Medicaid programs, a secondary payor channel that funds 34.1% of Pennant's senior living revenue.
See also: Healthcare · Medical Care Facilities
From The Pennant Group, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-07Recent Developments — The Pennant Group, Inc.
Latest news
- NEWS Centers For Medicare & Medicaid Services Announces Six-Month Moratoria On Hospice And Home Health Agency Registrations, — benzinga May 13, 2026 neutral
- NEWS RBC Capital Maintains Outperform on Pennant Gr, Raises Price Target to $42 — benzinga May 8, 2026 positive
- NEWS Truist Securities Maintains Buy on Pennant Gr, Raises Price Target to $42 — benzinga May 8, 2026 positive
- NEWS Wells Fargo Maintains Overweight on Pennant Gr, Raises Price Target to $41 — benzinga May 8, 2026 positive
- NEWS Earnings Scheduled For May 6, 2026 — benzinga May 6, 2026 neutral
Generated 2026-07-07T11:41:57Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMregulatoryMedicare48%10-K Item 1A: 'We derived 48.4% of our revenue from the Medicare program for the year ended December 31, 2025, which is typical for our business.'
- HIGHregulatorygovernment payors (Medicare and Medicaid)62%10-K Item 1A: 'For the year ended December 31, 2025, 61.5% of our revenue was provided by government payors that reimburse us at predetermined rates, which is typical for our business.'
- HIGHregulatoryMedicare (hospice services)87%10-K Item 1: 'Medicare| | 43.8 | %| | 87.0 | %| | — | %| | 48.4 | %'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $39.91: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.4/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $37.12. Score 5.4/10, moderate confidence.
Take-profit target: $39.20 (-1.8% upside). Prior stop was $37.12. Stop-loss: $37.12.
Concentration risk — Regulatory: government payors (Medicare and Medicaid) (61.5%); Concentration risk — Regulatory: Medicare (hospice services) (87.0%); Target reached (-11.0% upside).
The Pennant Group, Inc. trades at a P/E of 44.8 (forward 24.2). TrendMatrix value score: 4.1/10. Verdict: Sell.
13 analysts cover PNTG with a consensus score of 4.4/5. Average price target: $41.
What does The Pennant Group, Inc. do?The Pennant Group is a U.S. healthcare services company operating home health, hospice, and senior living businesses...
The Pennant Group is a U.S. healthcare services company operating home health, hospice, and senior living businesses across 16 states through 172 home health and hospice agencies and 63 senior living communities with 4,428 units as of December 31, 2025. The company derived 48.4% of total 2025 revenue from Medicare and 61.5% from government payors combined, with its hospice segment alone generating 87.0% of revenue from Medicare, reflecting a decentralized "cluster" operating model inherited from its 2019 spin-off from The Ensign Group.