Stock Of The Day: Big 2025 Winner Flashes Buy Signal

2026-02-20 04:37:51

			BrightSpring Hlth Svcs

				BrightSpring Hlth Svcs

			BTSG

$ 40.65

IBD Stock Analysis

										*   Rebounds from 10-week in 4-weeks tight pattern with 41.26 entry.

Composite Rating

91/99

Industry Group Ranking

136/197

Emerging Pattern

				Three Weeks Tight

Three Weeks Tight

				After a breakout a stock will sometimes consolidate tightly. A three-weeks tight is when a stock closes within 1% to 1.5% of the prior week's close. A four-weeks-tight pattern also is possible Offers entry for existing holders to add shares.

Not real-time data. All data shown was captured at 1:38PM EST on 02/18/2026.

BrightSpring Health Services (BTSG) is Wednesday’s IBD Stock Of The Day as the specialty drug delivery firm flashes a buy signal with a rebound from a key support level. The fast-growing Louisville, Ky., company, a 2024 IPO, is expected to post 57% growth in earnings per share when it reports fourth-quarter earnings before the stock market open on Feb. 27.

BrightSpring is working on a seventh straight monthly advance, after logging a gain of 120% for 2025.

Keep in mind that buying ahead of earnings presents additional risk. IBD advises that investors consider an options strategy to manage risk ahead of earnings.

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BTSG Seen As Durable Growth Play

BMO Capital analyst Sean Dodge raised his price target for BTSG stock to 46 from 40 on Jan. 23. He highlighted accelerated growth in its specialty pharma business, with a 35% compound growth rate starting 2024, and success in winning key distribution agreements for oncology drugs.

Dodge reaffirmed BTSG as a top pick based on conviction in the durability of growth in its specialty business.

No. 5 In Specialty Pharma

William Blair analyst Jared Hasse initiated coverage on Dec. 8 with an outperform rating based on BrightSpring Health’s “unique, diversified health care platform and compelling growth outlook.”

Hasse calls Onco360 BrightSpring’s “core growth franchise,” describing it as one of the largest specialty pharmacies focused on dispensing oncology and rare-disease therapies. He says Onco360 is among the fastest-growing specialty pharmacy operators and sees that as a reflection of its strong competitive position.

Based on 2024 Drug Channels Institute data, BrightSpring was ranked No. 5 among pharmacy operators with $6.5 billion in specialty pharma revenue. That was behind CVS Health (CVS), Cigna (CI), UnitedHealth Group (UNH) and Walgreens Boots Alliance.

One reason that the competitive landscape matters is because of limited distribution drugs (LDDs). Drugmakers sometimes limit distribution of specialty medicines to one or more pharmacies because of special storage, handling and monitoring requirements.

Hasse sees BrightSpring’s growing LDD portfolio as a key contributor to driving “at least midteens earnings growth.”

Aging baby boomers and a large development pipeline for specialty drugs provide a structural growth story for BrightSpring, Hasse says. Branded drugs with $16.6 billion in 2024 revenue losing exclusivity should also add to growth and improve margins.

Strong Free Cash Flow

BrightSpring’s 186 pharmacies are in every state and it serves over 450,000 patients daily. In addition to its pharmacies, the company provides drug infusion services delivered in the home or community settings. It also provides neuro rehabilitation at other services in the home.

Hasse says BrightSpring “is uniquely positioned to support aging in place,” which is what most seniors want.

The financial model is one that produces “strong free cash flow,” with only about 1% of revenue spent on capex. That supports M&A, a key component of its growth strategy.

BTSG Stock

BrightSpring Health rose 5.9% to 40.70 in Wednesday afternoon stock market action. The convincing bounce off support at its 50-day moving average (38.28) broke above a recent high, flashing an early entry opportunity around 40.67.

BrightSpring also etched out a four-weeks-tight pattern, according to MarketSurge Pattern Recognition, with weekly changes of no more than 1.5%. The 41.26 top of that tight formation can be used as a standard buy point.

BTSG’s relative strength line, the blue line in IBD charts that tracks its progress vs. the S&P 500, hit a new high Wednesday, a bullish signal.

BTSG is ranked No. 1 in IBD’s Medical-Outpatient/Home Care Group, according to IBD Stock Checkup.

Be sure to read IBD’s The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.

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