
HCSG Stock Forecast & Price Target
HCSG Analyst Ratings
Bulls say
Healthcare Services Group Inc. reported total revenues of $464.3 million, reflecting an 8.5% increase year-over-year, driven by significant contributions from both Environmental Services and Dietary Services segments. The company benefits from improving nursing home occupancy rates, which reached 85.7%, and anticipates continued growth supported by demographic trends and stable capacity in the healthcare sector. Additionally, with cash and securities totaling $207.5 million and a strategic stock repurchase program set to accelerate, the company's robust cash flow positions it well for sustainable growth and shareholder returns.
Bears say
The negative outlook on Healthcare Services Group Inc. is driven by a historical precedent of financial distress within the nursing home sector, exacerbated by changes in payment rules and rates, which previously led to a significant number of bankruptcies. Additionally, the company's profitability metrics reveal inefficiencies in converting investments to earnings, as indicated by subpar ratios like return on equity (ROE) and return on assets (ROA). Moreover, the dependency on the financial health of clients, particularly Genesis, further amplifies the company's vulnerability to sector-specific downturns, suggesting potential challenges in maintaining stable revenue streams.
This aggregate rating is based on analysts' research of Healthcare Services Group and is not a guaranteed prediction by Public.com or investment advice.
HCSG Analyst Forecast & Price Prediction
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