Should I Buy CHE? CHE 2026 Analysis

Should You Buy Chemed Corp (CHE) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

447.740

1 Day change

-1.25%

52 Week Range

623.610

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient investor: trend is bearish (SMA200 > SMA20 > SMA5) and price sits below the pivot (438) with nearby downside supports at ~425 and ~417.
No Intellectia edge today: AI Stock Picker = no signal; SwingMax = no recent signal, so there’s no strong timing confirmation to step in pre-market.
Sentiment backdrop is mixed-to-negative: hedge funds are selling aggressively (+158% QoQ selling), and Wall Street just saw a notable downgrade tied to Roto-Rooter margin headwinds.
Net: wait/hold rather than buy into weakness ahead of earnings (2026-02-25), unless you’re specifically targeting a catalyst-driven bounce and accept the risk of a further drift toward support.

Technical Analysis

Pre-market: ~$431 (-0.49%), below pivot 438.156 → near-term bias remains downside unless price reclaims pivot.
Moving averages: Bearish stack (SMA_200 > SMA_20 > SMA_5) signals an established downtrend.
MACD: histogram -2.305 (below 0) but negatively contracting → selling pressure may be easing, but not yet a reversal trigger.
RSI(6): 40.43 (neutral/weak) → not oversold enough to suggest a high-conviction bounce.
Levels: Resistance R1 ~450.97 then R2 ~458.88; Support S1 ~425.34 then S2 ~417.43.
Pattern-based forward bias (probabilistic): modest upside next day/week, but -1.8% next month skew suggests continued drift lower without a catalyst.
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock today.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Put open interest (833) exceeds call open interest (436) → hedging/bearish positioning dominates outstanding contracts.
Flow today is tiny (total volume 7) with put-call volume ratio 0.17 → today’s flow is call-leaning, but too small to outweigh OI signal.
Volatility: IV30 ~27.26 vs HV ~29.8 (IV slightly below realized) → options not pricing an immediate large move; IV percentile ~51.6 is mid-range.
Open interest is elevated vs 30D average (today vs avg ~122.6%) → notable positioning exists, but directionally it leans protective (high OI put/call).

Technical Summary

Sell

Buy

Positive Catalysts

- News framing argues valuation is pricing in an overly pessimistic outlook, implying potential mean-reversion upside if execution stabilizes.
- Hospice market (VITAS) remains structurally promising long term; any improvement in admissions trend could re-rate sentiment.
- Earnings catalyst upcoming: QDEC 2025 earnings on 2026-02-25 (after hours) could reset expectations if margins/volume surprise positively.
- MACD contraction suggests downside momentum is easing, which can support a bounce if price reclaims ~438 pivot.

Neutral/Negative Catalysts

- Business headwinds: VITAS guidance pressure from Medicare cap adjustments + lower admissions; Roto-Rooter pressured by post-COVID normalization and higher digital marketing costs.
- Profitability deterioration in the latest reported quarter: margins and earnings down YoY (see financials) → reinforces the market’s caution.
- Hedge fund activity: selling increased 158.47% over the last quarter → institutional pressure.
- Analyst downgrade risk: Jefferies moved to Hold and expects shares to trade sideways absent a strategic announcement.
- Technical setup remains bearish; failure to hold ~425 support increases risk of a slide toward ~417.

Financial Performance

Latest quarter provided: 2025/Q3.
Revenue: $624.9M (+3.09% YoY) → modest top-line growth.
Net income: $64.24M (-15.23% YoY) → profitability weakening.
EPS: 4.46 (-10.80% YoY) → earnings contraction.
Gross margin: 28.91% (-9.80% YoY) → meaningful margin pressure (key issue also echoed in commentary around Roto-Rooter costs and VITAS dynamics).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: more cautious.
2026-01-22 Jefferies: Downgraded to Hold from Buy, PT cut to $475 from $550; cited persistent Roto-Rooter margin headwinds and limited visibility; expects sideways action without a strategic catalyst.
2025-11-10 RBC Capital: Maintained Outperform, PT trimmed to $572 from $589; viewed Q3 as solid with reaffirmed guidance despite slight EBITDA softness.
Wall Street pros: defensive/hospice exposure (VITAS) with long-run market tailwinds; potential undervaluation if growth re-accelerates.
Wall Street cons: near-term execution/margin pressure (especially Roto-Rooter) + weaker visibility; recent downgrade signals reduced conviction.
Politicians/congress trading: No recent congress trading data available. Insiders: neutral/no significant trend.

4 Analyst Rating

Wall Street analysts forecast CHE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHE is 574.25 USD with a low forecast of 550 USD and a high forecast of 595 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

0 Hold

0 Sell

Strong Buy

Current: 453.400

Low

550

Averages

574.25

High

595

Current: 453.400

Low

550

Averages

574.25

High

595

Jefferies

Brian Tanquilut

Buy -> Hold

downgrade

$550 -> $475

AI Analysis

2026-01-22

Reason

Jefferies

Brian Tanquilut

Price Target

$550 -> $475

AI Analysis

2026-01-22

downgrade

Buy -> Hold

Reason

Jefferies analyst Brian Tanquilut downgraded Chemed to Hold from Buy with a price target of $475, down from $550. The firm is "incrementally negative" on the company's Roto Rooter business given persistent margin headwinds, limited visibility into improvement, and its view that a path to normalized growth in 2026 appears unlikely. As such, Jefferies expects Chemed shares to trade sideways absent a strategic announcement.

RBC Capital

Outperform -> NULL

downgrade

$589 -> $572

2025-11-10

Reason

RBC Capital

Price Target

$589 -> $572

2025-11-10

downgrade

Outperform -> NULL

Reason

RBC Capital lowered the firm's price target on Chemed to $572 from $589 and keeps an Outperform rating on the shares. The company reported solid Q3 results and reaffirmed full-year guidance, the analyst tells investors in a research note. While adjusted EBITDA in both VITAS and Roto-Rooter was slightly below Street consensus, the print was in line with the management's expectations and serves as reaffirmation of its confidence in navigating challenges, RBC added.

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CHE Should I Buy

CHE Should I Buy

Should You Buy Chemed Corp (CHE) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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