Healthcare Services Group (HCSG): Reassessing Valuation After a Strong 3-Month and 1-Year Share Price Rebound

Healthcare Services Group (HCSG) has seen a significant share price rebound, rising 19% in the past 3 months and over 50% in the past year. Despite this, HCSG trades below analyst targets, with a fair value estimated at $21.50, suggesting it is undervalued. Analysts have mixed views, with price targets ranging from $15.0 to $19.0. The stock trades at a premium PE ratio, indicating limited room for error. Persistent risks include client concentration and labor costs, which could impact margins.

Healthcare Services Group (NASDAQ:HCSG) Cut to Buy at Wall Street Zen

Wall Street Zen downgraded Healthcare Services Group (NASDAQ:HCSG) from "strong-buy" to "buy". Other analysts have varied ratings, with an average "Hold" rating and a price target of $19.40. The stock opened at $18.76, with a market cap of $1.32 billion. Recent earnings exceeded expectations, with $0.23 EPS and $464.34 million revenue. Hedge funds have increased their positions in HCSG, owning 97.97% of the stock.

HEALTHCARE SERVICES GROUP INC SEC 10-Q Report

Healthcare Services Group Inc. has released its Q3 2025 Form 10-Q report, showcasing significant financial growth. Revenues increased to $464.3 million from $428.1 million, driven by demand in Housekeeping and Dietary services. Net income surged to $42.9 million, up from $14.0 million, with basic and diluted income per share rising to $0.59. The company operates primarily in Housekeeping and Dietary segments, managing service agreements with clients. Future operations may be influenced by the One Big Beautiful Bill Act, and the company has received Employee Retention Credit refunds from the IRS.

Healthcare Services | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 464.34 M

Healthcare Services Group Reports Strong Q3 Earnings

Healthcare Services Group reported strong Q3 earnings with revenue of $464.3 million, an 8.5% increase year-over-year. The company showcased healthy cash flow of $71.3 million and a robust balance sheet with $207.5 million in cash and marketable securities. Despite challenges from Genesis Healthcare's bankruptcy and rising SG&A expenses of $50.5 million, the company remains optimistic about future growth, projecting Q4 revenue between $460 million and $470 million. A proactive share buyback program totaling $42 million year-to-date reflects its commitment to shareholder value.