Chemed (CHE) Stock Forecast & Price Target

Chemed Corp is poised for a positive outlook primarily due to its leading position in the hospice market through its VITAS segment, which is expected to rebound in 2026 following a focus on lower-profit short-stay admissions. The company benefits from solid demand growth across both its hospice and Roto-Rooter segments, enhancing its overall revenue stability. Furthermore, VITAS has demonstrated the ability to grow profitability through margin improvements and a favorable long-term reimbursement environment, indicating a robust foundation for future financial performance.

The analysis identifies several fundamental factors contributing to a negative outlook on Chemed Corp's stock. The company is facing macroeconomic headwinds that are anticipated to result in weaker consumer demand for both the Roto-Rooter and VITAS segments, leading to a projection of FY26 earnings per share (EPS) that is 10% below prior targets. Additionally, the decline in Roto-Rooter’s adjusted EBITDA margin by 520 basis points year-over-year, driven by rising labor and marketing costs amid decreasing lead volume, further exacerbates concerns about the company's financial performance.