
HCSG Stock Forecast & Price Target
HCSG Analyst Ratings
Bulls say
Healthcare Services Group Inc. reported a revenue increase of 8.5%, totaling $464.3 million, driven by strong performance in both its Environmental Services and Dietary Services segments, with revenues of $211.8 million and $252.5 million, respectively. The company is positioned to benefit from rising nursing home occupancy rates, which reached 85.7%, indicating improving demand in the healthcare sector, alongside projected revenue growth of 6.8% and an increase in adjusted EBITDA margins for 2026. Furthermore, with cash and securities totaling $207.5 million and a strategic stock repurchase program underway, Healthcare Services Group demonstrates robust cash flow strength, enhancing its potential for shareholder returns and operational expansion.
Bears say
Healthcare Services Group Inc. exhibits a concerning financial outlook characterized by a weak profitability profile, as indicated by low return on equity (ROE) and return on assets (ROA), suggesting inefficiency in converting investments into earnings. Historical precedents of financial distress within the nursing home sector, driven by changes in payment rules and rates, pose ongoing risks that could adversely affect the company's revenue streams. Additionally, the company's performance is heavily dependent on the financial stability of its key clients, such as Genesis, which raises further concerns about its long-term viability in a challenging market environment.
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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