Service Corporation International (NYSE:SCI) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded Service Corporation International from “hold” to “sell,” although the broader analyst consensus remains “buy” with a target price of $100.67.
• SCI’s latest quarter showed revenue rising 4.6% year over year to $1.11 billion, but EPS of $0.97 missed the $0.99 consensus estimate.
• The company faces near-term earnings pressure after lowering its fourth-quarter and full-year adjusted EPS guidance, citing weaker funeral volumes and higher costs.

Service Corporation International (NYSE:SCI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday, Wall Street Zen reports.

Other analysts have also issued reports about the stock. Weiss Ratings raised shares of Service Corporation International from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, October 21st. UBS Group lifted their price target on shares of Service Corporation International from $93.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Four research analysts have rated the stock with a Buy rating. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $100.67.

Service Corporation International Price Performance

Shares of Service Corporation International stock opened at $76.36 on Friday. The company has a current ratio of 0.40, a quick ratio of 0.49 and a debt-to-equity ratio of 3.16. The company's 50-day moving average price is $80.00 and its two-hundred day moving average price is $79.97. Service Corporation International has a 52 week low of $68.41 and a 52 week high of $90.99. The stock has a market cap of $10.41 billion, a PE ratio of 18.89, a price-to-earnings-growth ratio of 1.75 and a beta of 0.81.

Service Corporation International (NYSE:SCI - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $0.97 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.02). Service Corporation International had a net margin of 12.70% and a return on equity of 34.96%. The business had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter last year, the business posted $0.87 EPS. The business's revenue for the quarter was up 4.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Service Corporation International will post 3.99 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SCI. Peterson Wealth Services grew its holdings in Service Corporation International by 10.5% during the third quarter. Peterson Wealth Services now owns 17,011 shares of the company's stock valued at $1,295,000 after purchasing an additional 1,619 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of Service Corporation International in the third quarter valued at approximately $41,000. GAMMA Investing LLC lifted its stake in shares of Service Corporation International by 20.0% in the third quarter. GAMMA Investing LLC now owns 3,204 shares of the company's stock worth $244,000 after buying an additional 533 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in shares of Service Corporation International by 5.0% in the third quarter. Farther Finance Advisors LLC now owns 7,527 shares of the company's stock worth $573,000 after buying an additional 361 shares during the last quarter. Finally, CX Institutional lifted its stake in shares of Service Corporation International by 7.3% in the third quarter. CX Institutional now owns 12,345 shares of the company's stock worth $940,000 after buying an additional 838 shares during the last quarter. Institutional investors and hedge funds own 85.53% of the company's stock.

Key Headlines Impacting Service Corporation International

Here are the key news stories impacting Service Corporation International this week:

• Positive Sentiment: Third-quarter revenue increased 4.6% year over year to approximately $1.11 billion, exceeding analysts’ $1.10 billion estimate. Net income and diluted EPS also rose from the prior-year quarter. Service Corporation Q3 Earnings, Revenues Rise
• Positive Sentiment: Operating cash flow rose 18% to $296.8 million, while comparable preneed funeral and cemetery sales production increased 6% and 5%, respectively. SCI also maintained its full-year operating cash-flow midpoint of $1.085 billion and continued returning capital through dividends and share repurchases. SCI Q3 Revenue and Cash Flow Results
• Positive Sentiment: One valuation analysis argues that SCI stock may be approximately 28% undervalued following the selloff, potentially attracting value-oriented investors. SCI Stock May Be Undervalued
• Neutral Sentiment: A shareholder-investigation notice was announced after the earnings-related decline. The notice does not represent a finding of wrongdoing, but it adds a legal and reputational overhang. SCI Investigation Notice
• Negative Sentiment: SCI cut fourth-quarter 2026 adjusted EPS guidance to $1.10–$1.20, well below the $1.33 consensus estimate, and reduced full-year guidance to $3.94–$4.04 versus expectations of $4.19. Management cited lower funeral volumes and higher costs, creating immediate pressure on earnings expectations. SCI Updates 2026 Earnings Guidance
• Negative Sentiment: Third-quarter EPS of $0.97 missed the approximately $0.98–$0.99 analyst consensus despite revenue growth, reinforcing concerns about cost pressures and weaker near-term operating performance. SCI Q3 2026 Earnings Call Transcript

About Service Corporation International

Service Corporation International NYSE: SCI is a Houston-based provider of funeral, cremation and cemetery services. The company operates funeral homes, cemeteries and cremation facilities, offering arrangements for traditional funerals, memorial services and cremations, as well as cemetery property, burial services and related merchandise.

SCI serves families primarily in the United States and Canada through a network of locations and a portfolio of brands that includes Dignity Memorial, Funeraria del Angel and Neptune Society.

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