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Will Healthcare Services (HCSG) Gain on Rising Earnings Estimates?
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Healthcare Services (HCSG - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this provider of housekeeping, laundry and dietary services to health care facilities is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Healthcare Services, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
The earnings estimate of $0.21 per share for the current quarter represents a change of +23.53% from the number reported a year ago.
Over the last 30 days, the Zacks Consensus Estimate for Healthcare Services has increased 31.25% because one estimate has moved higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $0.87 per share for the full year, which represents a change of +14.47% from the prior-year number.
The revisions trend for the current year also appears quite promising for Healthcare Services, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 35.94%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Healthcare Services currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Healthcare Services have attracted decent investments and pushed the stock 27% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Will Healthcare Services (HCSG) Gain on Rising Earnings Estimates?
Healthcare Services (HCSG - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this provider of housekeeping, laundry and dietary services to health care facilities is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Healthcare Services, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
The earnings estimate of $0.21 per share for the current quarter represents a change of +23.53% from the number reported a year ago.
Over the last 30 days, the Zacks Consensus Estimate for Healthcare Services has increased 31.25% because one estimate has moved higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $0.87 per share for the full year, which represents a change of +14.47% from the prior-year number.
The revisions trend for the current year also appears quite promising for Healthcare Services, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 35.94%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Healthcare Services currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Healthcare Services have attracted decent investments and pushed the stock 27% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.