Shares in funeral home owner and operator InvoCare Limited (ASX: IVC) have bottomed out to a 52-week low, sitting slightly up at the time of writing to $11.76 after hitting $11.56 at May 3 close.
The InvoCare share price fell sharply off the back of revised FY18 guidance this week as the company announced earnings could take a hit from its growth strategy plans to refurbish 221 funeral locations.
But the pain should be short-lived, with InvoCare predicting earnings growth after the strategy is executed, with plans to increase its market share and enter the regional Australian and New Zealand markets.
Elsewhere in the sector Propel Funeral Partners Ltd (ASX: PFP) shares are down 1.3% to $2.98 at the time of writing as investors potentially clock the damage that could be done by InvoCare's plans to eat into its already-established regional market.
Propel's first-half results were strong with revenue lifting 84% to $38.9 million from $21.2 million and operating EBITDA up 15% on its prospectus forecast of $18.4 million to $21.1 million.
Retirement village cousin Summerset Group Holdings Ltd (ASX: SNZ) has been flying at 52-week highs of late, with today's share price steady at $6.50 after a 12-month high of $6.75 on April 23.
