Here's Why You Should Retain Community Health Stock for Now

Community Health Systems, Inc. CYH is well-poised for growth, driven by growing occupancy, acquisitions, partnerships and business streamlining efforts. Over the past year, shares of CYH have grown 6.3%, underperforming the industry’s 25.3% rise.Community Health — with a market capitalization of $442 million — provides a wide range of inpatient and outpatient medical and surgical services, which include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, rehabilitation services and many more.Courtesy of solid prospects, this Zacks Rank #3 (Hold) stock is worth retaining at the moment.Where Do Estimates for CYH Stand?The Zacks Consensus Estimate for CYH’s 2025 earnings is pegged at 87 cents per share, indicating a 184.5% year-over-year rise. In the past 60 days, it has witnessed one upward estimate revision against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $12.5 billion for 2025. The company beat earnings estimates in two of the past four quarters and missed twice. CYH carries a Value Score of A.Community Health Systems, Inc. Price, Consensus and EPS Surprise Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. QuoteCYH’s Growth DriversCommunity Health continues to focus on investing in high-return markets and physician alignment to drive volume and acuity recovery. It is focusing on expanding high-demand services like neurosurgery, spine care, urology and robotic surgery programs. Occupancy rates have steadily improved, reaching 52.5% in 2024 and averaging 52.8% in the first nine months of 2025. We expect this to climb to 54.4% by year-end.The company is strategically expanding its reach through targeted acquisitions and partnerships to enhance its offerings, tap into new markets and launch innovative services. It acquired a vascular surgery practice and relocated a large OB/GYN practice onto its Birmingham campus. To streamline operations, CYH has been actively divesting non-core assets, including Lake Norman and ShorePoint in early 2025, and Cedar Park in mid-year. It partnered with Denim Health to integrate conversational AI technology into its Patient Access Center, which handles calls for almost a thousand CYH-affiliated primary care providers.CYH plans to redirect capital toward lower-cost, higher-return access points such as ambulatory surgery centers, freestanding EDs and urgent care facilities. Alongside this, the company continues to add employed physicians and advanced practice providers, positioning its hospitals for enhanced capacity utilization and a better mix of higher-acuity cases.CYH’s cash flow situation is expected to strengthen this year. Net operating cash flow is forecasted to be within $600-$700 million for 2025, up from $480 million last year, reflecting growing strength in operations.Key ConcernsThere are a few factors that investors should keep an eye on.Balance sheet weakness can affect Community Health's financial flexibility. It exited the third quarter with cash and cash equivalents of $123 million, while long-term debt amounted to $10.6 billion. Profitability also lags, with return on invested capital at 8.5% versus the industry’s 9%.On valuation, CYH trades at a forward 12-month price-to-sales ratio of just 0.04X, far below the industry average of 0.67X.Stocks to ConsiderSome better-ranked stocks in the Medical space are Collegium Pharmaceutical, Inc. COLL, ANI Pharmaceuticals, Inc. ANIP and CorMedix Inc. CRMD, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Collegium Pharmaceutical’s current-year earnings of $7.55 per share has witnessed three upward revisions in the past 60 days against no movement in the opposite direction. Collegium Pharmaceutical beat earnings estimates in each of the trailing four quarters, with the average surprise being 10.6%. The consensus estimate for current-year revenues is pegged at $783.9 million, suggesting 24.2% year-over-year growth.The Zacks Consensus Estimate for ANI Pharmaceuticals’ current-year earnings of $7.56 per share has witnessed five upward revisions in the past 60 days, against no movement in the opposite direction. ANI Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 21.2%. The consensus estimate for current-year revenues is pegged at $870.2 million, suggesting 41.6% year-over-year growth.The Zacks Consensus Estimate for CorMedix’s current-year earnings of $2.87 per share has witnessed three upward revisions in the past 60 days, against no movement in the opposite direction. CorMedix beat earnings estimates in each of the trailing four quarters, with an average surprise of 27%. The consensus estimate for current-year revenues is pegged at $309.8 million, suggesting 612.7% year-over-year growth.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want 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 Community Health Systems, Inc. (CYH): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report CorMedix Inc (CRMD): Free Stock Analysis Report Collegium Pharmaceutical, Inc. (COLL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks