Service Corp (SCI) Stock Forecast & Price Target

Service Corp International demonstrated robust performance in its 2Q25 financial results, highlighted by a notable 5.3% year-over-year increase in comparable pre-need cemetery sales production, which surpassed market expectations. Additionally, the company's average funeral revenue per service grew by 3% year-over-year in the same quarter, indicating a positive trend in pricing and service demand. This growth, fueled by consistent pre-need sales and an upward trajectory in funeral revenue, underlines a strengthening financial outlook for the company moving forward.

Service Corp International's financial outlook is negatively impacted by the impending potential changes to the FTC's Funeral Rule, which could pose significant operational challenges for the company. Additionally, despite a consistent adjusted EPS CAGR of 14% from 2010 to 2019, the variability within this range—highlighted by a low of 6% in 2019—indicates that growth may not be sustainable in the face of evolving regulatory and market conditions. Furthermore, difficulties in penetrating certain markets due to competitive pressures may limit future revenue expansion opportunities, further exacerbating concerns about the company's long-term performance.