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    Chemed (CHE) Could Be 21% Undervalued Ahead Of Tuesday Earnings

    Simply Wall St·10/26/2026 19:30:29
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    Earnings anticipation puts Chemed in focus

    Chemed (CHE) heads into its earnings report this Tuesday with attention on whether it can match analysts’ expectations for 9.5% year on year revenue growth after a period of recent estimate beats.

    Chemed’s share price sits at US$512.98 after a 21.05% year to date share price return, while the 1 year total shareholder return of 18.07% contrasts with a weaker 3 year total shareholder return. This suggests that recent momentum has improved as investors reassess the earnings risk and reward balance.

    Compare Chemed’s pre earnings momentum with a curated set of healthcare peers screened for stronger balance sheets and cleaner fundamentals using the list of solid balance sheet and fundamentals (24 results).

    The share price reset and shorter term gains create a straightforward question for Chemed: Does the current valuation still compensate you for the earnings risk being taken on from here?

    Most Popular Narrative: 21% Undervalued

    Chemed’s most followed narrative puts fair value at $650 per share, well above the last close of $512.98. This frames earnings expectations against a higher long term target that bullish analysts are working from.

    VITAS is repositioning its admission mix away from an unusually high share of short-stay, hospital based patients toward a more balanced pattern that historically supports higher average daily census. This could feed through to steadier revenue growth and stronger EBITDA margins over time.

    The resolution of the Florida Medicare Cap issue, together with an estimated US$9.5 million Medicare Cap limitation in 2026 versus US$27.2 million in 2025, frees management to focus on growth initiatives rather than mitigation. This could support more predictable earnings and margin outcomes.

    See why 2 investors see Chemed as 21% undervalued.

    Result: Fair Value of $650 (UNDERVALUED)

    Still, this bullish Chemed narrative leans heavily on VITAS winning longer stay hospice patients and on Roto-Rooter keeping digital customer acquisition costs in check.

    Find out about the key risks to this Chemed narrative.

    Next Steps

    Mixed messages on Chemed can be confusing, so move quickly to review the underlying numbers, weigh both risk and upside, and decide whether the balance suits you by checking the 3 key rewards and 1 important warning sign.

    Looking for more Chemed-sized investment ideas?

    If Chemed has you thinking more carefully about risk, reward, and timing, use the Simply Wall Street Screener to line up your next move before the market does.