Trade-Ideas LLC identified

Healthcare Services Group

(

HCSG

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Healthcare Services Group as such a stock due to the following factors:

  • HCSG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • HCSG has traded 4,726 shares today.
  • HCSG is trading at a new lifetime high.

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More details on HCSG:

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. The stock currently has a dividend yield of 2%. HCSG has a PE ratio of 4. Currently there are 3 analysts that rate Healthcare Services Group a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Healthcare Services Group has been 324,100 shares per day over the past 30 days. Healthcare Services Group has a market cap of $2.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.50 and a short float of 10.7% with 18.38 days to cover. Shares are up 20.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Healthcare Services Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, compelling growth in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues rose by 12.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HCSG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.37, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, HEALTHCARE SERVICES GROUP's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 177.0% when compared to the same quarter one year prior, rising from -$22.18 million to $17.09 million.
  • Powered by its strong earnings growth of 177.41% and other important driving factors, this stock has surged by 27.69% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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