HCSG

Healthcare Services (HCSG) has gained 2.62% over the past week and 33.21% over the past year, significantly outperforming the S&P 500's 15.59% annual return. The company holds a Zacks Rank #1 (Strong Buy) rating with a Momentum Style Score of B. Recent earnings estimate revisions have been positive, with consensus estimates increasing from $1.14 to $1.21 in the past 60 days, supporting its strong momentum profile.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings and strong momentum characteristics as of October 23rd: Hasbro (HAS), which gained 33% over three months; Universal Insurance Holdings (UVE), up 16.8% over three months with earnings estimates increased 26.4%; and Healthcare Services Group (HCSG), up 9% over three months. All three possess Momentum Score of B.

Healthcare Services Group raised its 2027 revenue growth outlook to low double digits following the acquisition of NEXDINE Hospitality, which adds over $150 million in annual revenue. The company benefits from cost-pass-through contracts that protect margins from inflation, while maintaining $504 million in liquidity to fund acquisitions and share buybacks. Strong retention rates above 90% and demographic tailwinds in senior care position the company for sustained long-term growth.

Healthcare Services Group (HCSG) is set to report Q3 2026 results on October 21 with projected revenues of $475-$485M. The company faces headwinds from timing of new business starts, food and labor inflation, lower insurance reserve benefits, and customer payment delays. While HCSG has a strong earnings surprise history, the Zacks model does not predict a beat this quarter with an Earnings ESP of 0.00% and Rank #3 (Hold).

Healthcare Services Group (HCSG) is highlighted as a potential value investment opportunity, holding a Zacks Rank #1 (Strong Buy) rating and an 'A' Value grade. The stock's P/B ratio of 2.4 and P/S ratio of 0.76 are both below industry averages, suggesting it may be undervalued by the market despite strong earnings outlook.