American Renal Associates Holdings, Inc (ARA) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of American Renal Associates Holdings, Inc (ARA) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 3 reasons to sell ARA stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ARA stock:

  • Is ARA a buy or a sell?
  • Should I sell or hold ARA stock today?
  • Is ARA a good buy / investment?
  • What are ARA analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ARA stock:

1. ARA stock price ($7.16) is close to the 52-week low ($5.56). Perhaps now is a good time to buy? See ARA price chart.

2. ARA quarterly revenue growth was 12.40%, higher than the industry and sector average revenue growth (4.62% and 3.10%, respectively). See ARA revenue growth chart.

3. ARA Price/Sales ratio is 0.28, and it’s low compared to its industry peers’ P/S ratios. See ARA forward Price/Sales ratio chart.

4. ARA PEG ratio (P/E adjusted for growth) is 3.98, and it’s low compared to its industry peers’ PEG ratios. See ARA PEG chart.

5. ARA average analyst price target ($10.00) is above its current price ($7.16). See ARA price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ARA stock (i.e., the bear case):

1. ARA profitability is declining. The YoY profit margin change was -0.94percentage points. See ARA profitability chart.

2. ARA forward P/E ratio is 19.22, and it’s high compared to its industry peers’ P/E ratios. See ARA forward P/E ratio chart.

3. ARA short interest (days to cover the shorts) ratio is 3.77. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ARA short interest ratio chart.

Now let's look at the key statistics for ARA:

Metrics ARA
Price $6.20
Average Price Target / Upside $10.00 / 61.29%
Average Analyst Rating Hold
Industry Diagnostics & Research
Sector Healthcare
Number of Employees 4,692
Market Cap $206.81M
Forward P/E Ratio 17.19
Price/Book Ratio 0.25
PEG 3.9
Revenue (TTM) $817.25M
YoY Quarterly Revenue Growth 12.4%
Profit Margin -1.98%

What are your thoughts on ARA?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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