Healthcare Services Group

HCSG · NASDAQ

$21.50+$0.39 (+1.85%)TodayMarket closed · Oct 20, 7:56 PM ET

Prev close $21.11

HCSG analyst rating

BuyConsensus of 6 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy3
Hold3
Underperform0
Sell0

12-month price target · 8 analysts

Average $27.54 (+28.1% upside)

Low: $24.24
Now: $21.50
High: $31.50

Upgrades and downgrades

The latest rating actions, newest first

HCSG analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Baird	Oct 8, 2026	Maintains	Neutral	$26.00 → $24.00	66%
Oppenheimer	Aug 19, 2026	Initiates	Outperform	$28.00	56%
UBS	Jul 8, 2026	Maintains	Buy	$27.00 → $30.00	64%
UBS	Apr 23, 2026	Maintains	Buy	$25.00 → $27.00	64%
RBC Capital	Apr 23, 2026	Maintains	Sector Perform	$22.00 → $24.00	67%
Benchmark	Apr 23, 2026	Maintains	Buy	$28.00 → $30.00	51%
BMO Capital	Apr 23, 2026	Maintains	Market Perform	$22.00 → $24.00	41%
RBC Capital	Mar 3, 2026	Initiates	Sector Perform	$22.00	67%
BMO Capital	Nov 13, 2025	Initiates	Market Perform	$20.00	41%
UBS	Oct 28, 2025	Maintains	Buy	$20.00 → $22.00	64%

The case for and against

Updated Jan 19, 2026

Bull case

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.

Bear case

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.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.