Universal Healthcare Services, Inc.

Company Description

Universal Healthcare Services, Inc., through its subsidiaries, owns and operates acute care hospitals, surgery centers and radiation oncology centers. The company owns and operated 26 acute care hospitals and 101 behavioral health centers in 32 states, Washington DC and Puerto Rico. Universal Healthcare was founded in 1978 and has a market cap of $2.51 billion.

Shares of UHS have been gaining since early March on the heels of an economic recovery and renewed optimism. The company's solid second-quarter results, reported on July 28, helped fuel the rally.

Second-Quarter Results

Revenue was up 3% from last year to $1.3 billion. Earnings came in strong at $1.44 per share, 31 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 3 quarters by an average of 17%.

Estimates Rise

With Universal raising its guidance, analysts were quick to follow suit. The current-year estimate is up 39 cents in the last 2 months to $4.54 per share. The next-year estimate is projecting respectable 4% earnings growth.

Valuation

Based upon the current-year estimate, this stock has a P/E multiple of 13.5X, a discount to the overall market, providing a nice touch of value to the upward trend.

The Chart

Shares of UHS have jumped from just above $30 in early March to a recent high above $63, take a look below.