
HCSG Stock Forecast & Price Target
HCSG Analyst Ratings
Bulls say
Healthcare Services Group Inc. reported total revenue of $464.3 million for the period, an increase of 8.5%, with strong contributions from its Environmental Services and Dietary Services segments, which saw revenues of $211.8 million and $252.5 million, respectively. The company is also benefiting from rising nursing home occupancy rates, reaching 85.7%, which is expected to continue improving alongside demographic trends, supporting a positive revenue growth outlook of 6.8% for 2026. Additionally, HCSG's robust cash position of $207.5 million, enhanced by effective cash flow management and ongoing stock repurchase initiatives, positions the company favorably for both shareholder returns and continued business expansion.
Bears say
Healthcare Services Group Inc. faces a challenging financial outlook, as evidenced by its weak profitability metrics, specifically indicated by subpar return on equity (ROE) and return on assets (ROA), which suggest inefficiencies in converting investments into earnings. Historical precedents of financial distress due to changes in payment rules and rates for nursing homes signal potential risks, as these factors previously contributed to elevated bankruptcy levels within the sector. Furthermore, the company's financial performance is significantly impacted by the health of its major client, Genesis, which introduces additional volatility and uncertainty in revenue stability.
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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