
HCSG Stock Forecast & Price Target
HCSG Analyst Ratings
Bulls say
Healthcare Services Group Inc. reported revenue of $464.3 million for the recent period, reflecting an 8.5% increase and positioning the company at the upper end of its guidance range. The nursing home occupancy rate has risen to 85.7%, the highest since 1Q20, suggesting ongoing improvement due to demographic trends and stabilized capacity. The company’s robust cash flow, evidenced by a rise in cash and securities to $207.5 million and its plans to accelerate a $50 million stock repurchase program, signifies strong financial health and a positive outlook for shareholder returns.
Bears say
Healthcare Services Group Inc. is facing a challenging outlook due to its elevated SG&A expenses, which, despite a year-over-year decrease, remain at a level that may hinder the company's operational efficiency. The historical precedent of payment rule changes leading to financial distress within the healthcare sector, particularly nursing homes, raises concerns about the stability of its client base and potential revenue fluctuations. Additionally, the company's weak profitability metrics suggest inefficiencies in converting investments into earnings, further complicating its financial health and future performance prospects.
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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