William Blair added five stocks to its November Analyst Conviction List: American Public Education Inc. (APEI), EQT Corporation (EQT), Healthcare Services Group Inc. (HCSG), Matador Resources Company (MTDR), and MiniMed Group Inc. The firm removed Amazon.com Inc. (AMZN), Cushman & Wakefield plc (CWK), Devon Energy Corporation (DVN), and Remitly Global Inc. (RELY).
Healthcare Services Group trades at $24.52 and has gained 37% over the past year. InvestingPro analysis suggests the stock is undervalued relative to its Fair Value estimate. The company holds more cash than debt, and six analysts have revised earnings upward for the upcoming period, according to InvestingPro data.
Healthcare Services Group reported third-quarter 2026 earnings of $0.36 per share, beating the Wall Street estimate of $0.24. Revenue came in at $479.6 million, missing the $480.8 million forecast. The company achieved nine consecutive quarters of revenue growth and improved cost of services to 83.2% of revenue, better than its 86% target. Management revised 2027 revenue growth outlook to low double digits from mid-single digits, citing new client wins and a retention rate above 90%.
The firm acquired NEXDINE Hospitality, expected to add over $150 million in annual revenue.
Each analyst selects up to two stocks for the Conviction List based on high conviction of strong performance over the next six months. The list is organized by market capitalization within sectors.