Stock of the Day

March 9, 2023

Community Health Systems (CYH)

$2.91
-$0.02 (-0.7%)
Market Cap: $413.16M

About Community Health Systems

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. The company was incorporated in 1996 and is headquartered in Franklin, Tennessee.

Today's Trend

Community Health Systems, Inc. (NYSE: CYH) shares decreased as investors absorbed a broad round of downward earnings revisions from Zacks Research.

  • Zacks Research maintained a “Hold” rating on Community Health Systems, indicating limited conviction that the revised outlook supports a stronger bullish view.
  • Analysts significantly reduced their earnings expectations across multiple periods. The FY2026 EPS forecast was lowered to -$1.20 from -$0.58, FY2027 to -$0.72 from -$0.14, and FY2028 to -$0.29 from $0.07.
  • Quarterly revisions were also notably weaker: Q3 2026 EPS was cut to -$0.38 from -$0.03, Q4 2026 to -$0.15 from $0.06, Q3 2027 to -$0.31 from -$0.01, and Q4 2027 to -$0.15 from $0.09. Smaller reductions were made to Q1 and Q2 2027 and Q1 and Q2 2028 estimates.
  • The revisions point to more persistent losses than previously expected. Zacks now forecasts negative EPS for every listed quarter through Q2 2028, reinforcing concerns about Community Health Systems’ profitability and near-term earnings momentum.

The estimate cuts are the primary apparent reason for weakness in CYH. They follow the company’s latest reported quarter, in which Community Health Systems missed EPS expectations and revenue declined year over year, adding to investor concerns about the hospital operator’s operating performance.

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