Chemed rises 4.8% after quarterly results show higher revenue and earnings

What happened

Chemed (CHE) rose 4.8% on October 28, 2026, because third-quarter results beat estimates and showed higher revenue and adjusted earnings. The company reported quarterly earnings per share of $6.75 against $6.44 expected and said VITAS hospice growth helped offset margin pressure at Roto-Rooter caused by higher customer-acquisition and fuel costs, according to GlobeNewsWire and Seeking Alpha. Trading opened 7.0% above the previous close and volume ran 2.4 times its 20-day average as the market absorbed the report.

How big was the move

The stock’s 4.8% gain amounted to 3.5 times a typical daily move for this stock and outperformed the healthcare sector median by 3.1 percentage points on the day. The S&P 500 rose 0.3% while Chemed rose 4.8%, and over the last five sessions the stock rose 4.3% versus the S&P 500’s five-session change of fell 0.2%. Its opening premium and above-average volume emphasized a company-specific reaction to the results rather than broad market forces. In the past five years the stock had 6 sessions with a gain of at least 4.8%; twenty trading days later the median result was a gain of 3.4%, and 4 of 6 were higher.

The technical picture

The stock closed 4.6% above its 20-day moving average and 3.6% above its 50-day moving average, and the 50-day average is above the 200-day average, a sign of an established uptrend. The stock has been above its 200-day average for 94 consecutive trading days and sits 5.1% below its 52-week high. The Relative Strength Index is 64, in a neutral range, and volatility is 22% annualized over 60 days, lower than 65% of its own readings over five years. Over one month the stock rose 4.2%, over three months it fell 0.3%, and over one year it rose 22.1%, 9.5 percentage points ahead of the S&P 500.

Fundamentals and valuation

For the four quarters through September 30, 2026, Chemed reported revenue of $2.66 billion, grew 5.2% from a year earlier, and delivered diluted earnings per share of $20.91, which rose 10.6% year over year. Gross margin was 31.7% (a year earlier: 32.2%), operating margin was 13.9% (a year earlier: 13.9%), and free-cash-flow margin was 11.1%. Return on invested capital was 19.5%, and the balance sheet shows net debt of 0.8 times EBITDA. The company reduced its share count by 9.6% over one year, which supports per-share metrics and can amplify earnings-per-share growth when results are steady.

The stock trades at 25.5 times trailing earnings and 20.9 times forward earnings, with a free-cash-flow yield of 4.4%. Its price to trailing earnings is lower than 76% of its own readings over the past five years; the five-year median is 27.9 times earnings. PromtFinance scores rank Chemed strong on Value (87) and Stability (95), but weaker on Growth (40) and Revisions (24), underscoring a mix of steady cash generation and limited growth momentum from a valuation perspective.

Earnings and analyst expectations

Chemed’s October 27, 2026, report delivered quarterly earnings per share of $6.75, 4.8% above estimates, marking three consecutive quarters beating expectations. The company’s average surprise over the last four reports is 2.8% above estimates, and the typical two-day reaction after recent reports was a rise of 0.4%. Analysts’ consensus price target is $650.00, 21.9% above the closing price, based on nine analysts; 33% of those analysts rate the stock Buy or Strong Buy while the consensus rating is Hold. The next report is due February 24, 2027.

What to watch

• February 24, 2027: next scheduled earnings report date
• One year metric: the stock rose 22.1% over one year, 9.5 percentage points ahead of the S&P 500
• Valuation context: price to trailing earnings is 25.5 times, below its five-year median of 27.9 times
• Operating mix: VITAS hospice growth versus margin pressure at Roto-Rooter caused by higher customer-acquisition and fuel costs
• Share count change: decreased by 9.6% over one year