GET DAILY SIGNALSWhy Is Service Corporation International (SCI) Stock Down -12.77% Today?
Key Takeaways
- SCI shares fell roughly 12.8% in early trading after the company's third-quarter earnings and reduced guidance disappointed investors.
- The primary catalyst was an earnings-driven move: adjusted EPS of $0.97 missed the $0.99 consensus, and management cut full-year and fourth-quarter guidance below Wall Street expectations.
- Softer funeral volumes plus higher healthcare, selling, and marketing costs compressed near-term margins and pressured the outlook.
- The move diverged from the broader market, reflecting a company-specific guidance reset rather than broad sector weakness.
- Traders are watching whether preneed cemetery sales momentum can convert into recognized revenue and whether Q4 costs stabilize.
- For more detail on this ticker's Price Targets, Earnings, and Forecast, explore the dedicated pages for additional analysis.
- To see how automated strategies are positioned across the market, explore Trending AI Robots.
Opening Summary
Service Corporation International (SCI), the largest provider of funeral, cemetery, and cremation services in North America, saw its stock plunge sharply on Thursday. Shares traded down approximately 12.77% to around $71.82, compared with a prior closing price of $82.33. The decline followed the company's third-quarter 2026 earnings release after Wednesday's close, in which results were mixed but forward guidance came in well below analyst expectations. The market reaction centered on a reduced full-year earnings outlook driven by softer funeral volumes and elevated operating costs.
Earnings Results and Guidance Cut
The central catalyst for the sell-off was the company's third-quarter report and, more importantly, its updated outlook. Revenue rose 4.6% year over year to $1.11 billion, narrowly topping the roughly $1.10 billion consensus. However, adjusted earnings per share came in at $0.97, missing the $0.99 analysts had expected.
The bigger surprise was guidance. Management guided fourth-quarter adjusted EPS to a range of $1.10 to $1.20, below the $1.33 consensus, and trimmed full-year 2026 adjusted EPS to a range of $3.94 to $4.04, down from prior expectations and versus a consensus near $4.19. Investors frequently punish guidance cuts more severely than modest earnings misses, and the reduced outlook drove the sharp price decline.
Margin Pressures and Softer Volumes
Behind the weaker guidance are several cost and volume dynamics. The company cited softer funeral volumes as well as higher healthcare expenses, elevated selling compensation tied to a restructured preneed sales model, and increased advertising and marketing spend. Cemetery gross margin contracted because preneed-related costs are recognized in the current period while the corresponding revenue is deferred into future quarters.
Management, led by CEO Tom Ryan, indicated these cost pressures are expected to persist into the fourth quarter. On a positive note, comparable cemetery preneed sales production rose 4.8% in the quarter, and operating cash flow grew roughly 17.7% year over year — a sign that underlying cash generation remains healthy even as reported earnings disappoint in the near term.
Market Context and Trading Activity
Trading volume was elevated relative to the stock's recent average, reflecting heavy selling pressure following the earnings release and guidance reset. The move was largely company-specific: SCI diverged from the broader market, as the decline stemmed from its own earnings shortfall rather than a sector-wide rotation. The shares broke below key near-term support levels in the move, unwinding much of the stock's recent gains as investors repriced the stock to reflect the lower earnings trajectory.
What Comes Next for SCI
Looking ahead, investors will focus on whether the company's preneed sales momentum translates into recognized revenue and earnings in future quarters. Key watch items include fourth-quarter results, the durability of funeral and cemetery volume trends, and whether selling and marketing investments begin to pay off. The company has now missed estimates in two of the last three quarters, and the guidance cut resets near-term expectations. Risks include persistent cost inflation, continued softness in funeral volumes, and the timing of deferred revenue recognition, while a stabilizing cost base and strong cash flow provide some offset.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SCI in upward trend: 10-day moving average moved above 50-day moving average on October 22, 2026
The 10-day moving average for SCI crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +2.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCI advanced for three days, in 167 of 308 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
SCI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for SCI moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 28 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 38 of 66 cases where SCI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 58%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SCI as a result. In 43 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
The Moving Average Convergence Divergence Histogram (MACD) for SCI turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In 24 of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at 60%.
SCI moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
The Aroon Indicator for SCI entered a downward trend on October 14, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 29 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 42 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. SCI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 60 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.771) is normal, around the industry mean (7.766). P/E Ratio (19.785) is within average values for comparable stocks, (10.469). Projected Growth (PEG Ratio) (1.390) is also within normal values, averaging (4.440). Dividend Yield (0.019) settles around the average of (0.080) among similar stocks. P/S Ratio (2.589) is also within normal values, averaging (1.645).
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
an operator of funeral homes and cemeteries
Industry PersonnelServices
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