SCI Stock Rallies 28% in Six Months: What's Next for Investors?

Zacks2024-11-28

Service Corporation International SCI has seen its shares rally 28.1% in the past six months, outperforming the industry’s growth of 26.8%. The largest provider of deathcare products and services in ...

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The largest provider of deathcare products and services in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sci-stock-rallies-28-six-143600228.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SCI Stock Rallies 28% in Six Months: What's Next for Investors?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSCI Stock Rallies 28% in Six Months: What's Next for Investors?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-28 22:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sci-stock-rallies-28-six-143600228.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Service Corporation International SCI has seen its shares rally 28.1% in the past six months, outperforming the industry’s growth of 26.8%. The largest provider of deathcare products and services in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sci-stock-rallies-28-six-143600228.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/sci-stock-rallies-28-six-143600228.html","article_id":"2487634533","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/0TpUhAGs.8rt2Qc6XaHNag--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/e830bd85114afeec523ec6a8987ff646"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487634533","pubTimestamp":1732804560,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Service Corporation International SCI has seen its shares rally 28.1% in the past six months, outperforming the industry’s growth of 26.8%. The largest provider of deathcare products and services in North America has also crushed the broader Zacks Consumer Staples sector and the S&P 500’s respective gains of 4.4% and 13.9% in the same time frame.SCI Price Performance vs. Industry, S&P 500 & Sector. Service Corporation closed the trading session at $88.60 on Wednesday, just slightly shy of its 52-week high of $89.31, scaled on Nov. 25. Technical indicators also support the stock, which is trading above its 50-day and 200-day moving averages. Trading above these averages signals bullish sentiments.Service Corporation’s current market valuation is stretched compared to its industry peers like C","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","ISBC":"投资者银行","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","BK4504":"桥水持仓","LU1878469433.USD":"THREADNEEDLE (LUX) - AMERICAN SMALLER COMPANIES \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","BK4137":"综合支持服务","CLX":"高乐氏","CSV":"Carriage Services Inc","LU1892829315.USD":"FIDELITY FUNDS SUSTAINABLE WATER & WASTE \"A\" (USD) ACC","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","BK4532":"文艺复兴科技持仓","BK4192":"特殊消费者服务","BK4018":"居家用品","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","MATW":"马修国际加工","BK4533":"AQR资本管理(全球第二大对冲基金)","SCI":"Service Corp International","BK4211":"区域性银行"},"translate_title":"SCI股票六个月内上涨28%：投资者的下一步是什么？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SCI":1,"MATW":1,"ISBC":1,"CSV":1,"CLX":0.9},"content_text":"Service Corporation International SCI has seen its shares rally 28.1% in the past six months, outperforming the industry’s growth of 26.8%. The largest provider of deathcare products and services in North America has also crushed the broader Zacks Consumer Staples sector and the S&P 500’s respective gains of 4.4% and 13.9% in the same time frame.\nSCI Price Performance vs. Industry, S&P 500 & Sector\nImage Source: Zacks Investment Research\nService Corporation closed the trading session at $88.60 on Wednesday, just slightly shy of its 52-week high of $89.31, scaled on Nov. 25. Technical indicators also support the stock, which is trading above its 50-day and 200-day moving averages. Trading above these averages signals bullish sentiments.\nWhat’s Behind SCI Stock’s Rally?\nService Corporation has been benefiting from its expansive network of funeral homes and cemeteries. The essential nature of its services shields the company from significant economic cyclicality, making it recession-resilient. The deathcare industry is largely immune to discretionary spending cuts, ensuring reliable revenue streams. To this end, Service Corporation’s diversified offerings cater to various consumer preferences, from traditional burial services to lower-cost cremation options. Its diverse portfolio of services, including at-need and pre-need funeral and cemetery offerings, helps capture multiple revenue streams.Service Corporation has demonstrated a disciplined and aggressive approach to expansion, allocating significant resources to strategic acquisitions and capital projects that position it for sustained growth. In the third quarter of 2024, the company invested $123 million in acquiring 10 funeral homes and two cemeteries, focusing on high-growth metropolitan markets. This strategy ensures that SCI not only expands its footprint but also reinforces its position as the market leader in North America. Service Corporation also allocated $31 million to real estate purchases in California, Florida and Texas, key states with strong demographic growth and increasing demand for cemetery and funeral services.The company’s acquisitions enable it to leverage its scale advantages, enhancing operational efficiencies and profitability. By integrating these newly acquired funeral homes and cemeteries into its established network, Service Corporation achieves cost savings in procurement, marketing and administrative functions. Acquisitions in high-growth areas allow the company to broaden its service capabilities, particularly in urban regions where the demand for personalized and premium memorial services is on the rise. These strategic moves align with projected demographic shifts, particularly the aging of the baby boomer population, which is expected to drive demand for funeral and cemetery services over the next two decades.\nHas the Recent Jump in Stock Price Made SCI Expensive?\nService Corporation’s current market valuation is stretched compared to its industry peers like Carriage Services, Inc. CSV and Matthews International Corporation MATW. SCI’s forward 12-month price-to-earnings (P/E) ratio is 22.82, surpassing the industry average of 21.46. This higher ratio implies that investors are potentially paying a premium for Service Corporation’s stock relative to its anticipated earnings performance. The company’s lofty valuation is concerning in light of the near-term challenges.\nSCI Stock Looks Overvalued\nImage Source: Zacks Investment Research\nCurrent Challenges for Service Corporation\nService Corporation faces challenging year-over-year comparisons due to the pull-forward effects of the pandemic, which temporarily increased funeral volumes and pre-need sales during 2020-2022. In the third quarter of 2024, funeral volumes showed a slight decline, and management expects this to stabilize only by 2025. The fading effects of pandemic-related demand create a high base for comparisons, making it harder for Service Corporation to achieve growth targets.Service Corporation’s Cemetery revenues were flat year over year in the third quarter of 2024, with a $5 million increase in endowment care trust fund income offset by declines in core revenues. Pre-need cemetery sales production fell 2.5% as a result of a decline in large sales activity, which faced significant headwinds due to development delays in major locations like Rose Hills. Flat revenue growth suggests challenges in driving top-line expansion, even as Service Corporation invests heavily in new developments.Service Corporation experienced a 50-basis point decline in funeral segment gross profit margins in the third quarter, dropping to 19.3%. This was attributed to inflationary pressures that outpaced revenue growth. Persistent inflation and rising fixed costs may further erode margins, limiting the company’s ability to grow net income. High corporate general and administrative expenses may put pressure on profitability.\nInvestors’ Guide to SCI Stock\nService Corporation International’s expansive network, recession-proof business model and strategic acquisitions solidify its leadership in the North American deathcare industry. Investments in high-growth metropolitan areas and demographic-driven opportunities support its long-term growth prospects. However, the stock’s premium valuation and near-term challenges, including inflationary pressures and flat revenue growth in key segments, may limit momentum. Investors should balance SCI’s strong market position with its operational and valuation risks. The company currently carries a Zacks Rank #3 (Hold).\nA Solid Consumer Staple Bet\nClorox CLX, which is engaged in the manufacture and marketing of consumer and professional products, currently carries a Zacks Rank #2 (Buy). CLX has a trailing four-quarter earnings surprise of 45.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Clorox’s current financial-year earnings implies growth of around 11% from the year-ago reported number.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nThe Clorox Company (CLX) : Free Stock Analysis Report\nCarriage Services, Inc. (CSV) : Free Stock Analysis Report\nService Corporation International (SCI) : Free Stock Analysis Report\nMatthews International Corporation (MATW) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487634533"}