Jim Cramer Outlines Why Pennant Group Stock Can Sail to $55

The Pennant Group, Inc. (NASDAQ:PNTG) was among Jim Cramer's stock calls on Mad Money, as he advised investors to stick with the largest tech companies in the market. Cramer highlighted the company's use of AI, as he said:

Next, let's talk about senior housing operators like Pennant Group and National HealthCare Corp. Check out the weekly chart of Pennant, oh man. As an operator of senior living communities, the biggest expense isn't buildings; it's people, okay? That's why Pennant has been embracing artificial intelligence to make its employees more efficient and basically do more with less. Fitzpatrick noticed that Pennant peaked at around $36 in late 2024 before pulling back 40%.

Since then, though, the stock has repeatedly found buyers at the $22 level… Over the next 20 months, Pennant trated sideways, forming a round base that looks like a bowl. I love bowl patterns. Basically, every time the stock comes down, institutional money managers would step up and basically prop it back up, and they never stopped buying the stock. Finally, just a couple weeks ago, all that supply below 37, well, it was soaked up.

So that same institutional buying pushed Pennant higher and higher. Now, they're running it up on high volume at this point… At the end, the stock's broken out above its key ceiling and resistance at 37. Today, it crossed above 40. And based on the depth of the action here, I gotta tell you something, this thing can sail to $55, I agree with Fitzpatrick, before the end of the year. That would be a very nice move. You want to be in on that move. I don't see much resistance at all.

Stock market data. Photo by Burak The Weekender on Pexels

The Pennant Group, Inc. (NASDAQ:PNTG) operates agencies that deliver clinical nursing, specialized therapies, and compassionate hospice care for terminally ill patients. Moreover, the company manages senior living communities that provide older adults with residential housing, meals, housekeeping, and daily living assistance.

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