Universal Health Services (UHS)

With a little mental therapy, Universal Health Services, Inc. (UHS - Snapshot Report) was able to put together a strong first-quarter performance; complete with a double-digit EPS surprise and an enhanced full-year outlook.

Yesterday's announcement helped this hospital operator to the apex of the Zacks #1 Rank Top Performers List today. Shares of the company gained more than 11.3% Tuesday. Meanwhile, volume moved past 3.3 million shares, compared to the daily average at right around 1.3 million shares.

One of the big factors behind this quarter's performance was the acquisition of Psychiatric Solutions, Inc. last November.

Universal Health Services earned $1.15 per share in the first quarter, compared to the year-ago result of 73 cents. The result was more than 22% in front of the Zacks Consensus Estimate. This marks the company's first positive surprise since last year's first quarter.

Revenues soared 42% to $1.91 billion from $1.35 billion last year.

The best news in the quarter, though, had to do with its outlook for the full year. UHS now expects between $3.85 and $4 for 2011, which is above its earlier guidance of $3.65 to $3.80. Such news will likely keep the trajectory of this chart moving in the right direction:

The Zacks Consensus Estimate for this year is currently $3.85 per share, which is up 3.2% in just the past 7 days. Over the past 2 months, the guidance has improved by 11%.

As for 2012, the Zacks Consensus Estimate is at $4.20 per share, suggesting year-over-year profit growth of about 9%. The outlook is up 5.5% in the past 2 months. Estimates have also moved up in the past 7 days for this period, but only by 2 cents or less than 1%.

Universal Health Services is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico and the U.S. Virgin Islands. At the moment, it is the only company from the medical-hospitals industry on today's Zacks #1 Rank List.

The only other company in UHS' neighborhood Tuesday was ZST Digital Networks, Inc. (ZSTN), which gained about 10.5%. (UHS and ZSTN were the only companies to gain in the double digits.) Volume was around 415,000, which was actually a little below the daily average of about 432,000.

ZSTN is a China-based company, principally engaged in (1) supplying digital and optical network equipment and providing installation services to cable system operators in China and (2) providing GPS location and tracking services to local logistics and transportation companies in China.

Read the full analyst report on UHS

Read the full analyst report on ZSTN