InnovAge: Care Economics Should Keep Improving Going Forward

Summary InnovAge's filling existing centers and controlling care costs could turn their continued enrollment growth into faster earnings growth in the long run. So, if their operating recovery materializes, it could make their current stock price a nice entry price in hindsight. However, note that INNV may face slower reimbursement growth in subsequent quarters, which does highlight that they need good execution as well. Fortunately, INNV’s FY2027 guidance suggests that their full-year adjusted EBITDA should increase, and that could be a nice tailwind for the stock price as well. I believe INNV is a viable speculative "buy" as long as they manage their enrollment and care costs well, especially through the Medicare risk-adjustment transition. Halfpoint/iStock via Getty Images InnovAge Holding Corp. ( INNV ) delivers healthcare directly and manages its patients’ medical spending. This is why INNV benefits if they help prevent avoidable hospital stays, which in turn can help its profits. Additionally, note that some major shareholders This article was written by Myriam Alvarez 3.63K Followers Follow My name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science from Ohio University, Athens, OH, USA, a graduate degree in Business Management from Universidad Andina Simon Bolivar, Quito, Ecuador, and the Ph.D. degree in computer applications from the University of Alicante, Spain.Disclosure: I collaborate professionally with Edgar Torres H, who is also an author on Seeking Alpha. Our analyses are conducted independently, and we adhere to Seeking Alpha's Shared Association Guidelines. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.