Universal Health Services, Inc. (UHS - Free Report) is well-poised for growth on the back of sustained top-line improvement, acquisitions, a diversified treatment network and rising cash reserves. A solid 2023 business outlook also acts as a tailwind for the company.
Zacks Rank & Price Performance
Universal Health currently carries a Zacks Rank #3 (Hold).
The stock has risen 8.8% in a year compared with the industry’s 18.6% growth. The Zacks Medical sector has declined 10.5% but the S&P 500 composite has gained 2.9% in the same time frame.
Favorable Style Score
UHS is well-poised for progress, as evidenced by its impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.
Robust Growth Prospects
The Zacks Consensus Estimate for Universal Health’s 2023 earnings is pegged at $10.27 per share, suggesting 4% growth from the prior-year figure. The same for revenues stands at $14.1 billion, which indicates an improvement of 5.4% from the year-earlier reading.
The consensus mark for 2024 earnings is pegged at $11.48 per share, suggesting 11.9% growth from the 2023 estimate. The same for revenues stands at $14.7 billion, which implies a 3.8% rise from the 2023 estimate.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 earnings has been revised upward 0.3% in the past 30 days.
Impressive Earnings Surprise History
The bottom line of Universal Health outpaced earnings estimates in each of the trailing four quarters, the average surprise being 5.62%.
A Favorable 2023 Outlook
UHS anticipates revenues within $14,044-$14,314 million this year, the midpoint of which indicates roughly a 4.8-6.8% increase from the 2022 level.
Adjusted earnings per share are estimated to lie between $9.50 and $10.50, the midpoint of which suggests 1.2% growth from the 2022 figure.
Business Tailwinds
After witnessing a CAGR of 7.6% over the past 12 years (2010-2022), the top line of Universal Health improved 5.3% in the first quarter of 2023 as well. The top line continues to benefit on the back of an expansive care network and solid contributions from the Acute Care Hospital Services and Behavioral Health Care Services segments.
Universal Health’s diversified treatment network comprises 358 inpatient facilities and 40 outpatient and other facilities stretched throughout 39 states, Washington, D.C., the U.K. and Puerto Rico as of Mar 31, 2023.
Higher admissions and patient days also contribute favorably to the segments’ performance. Continuous incidence of mental health issues among Americans is likely to sustain the solid demand for UHS’s behavioral healthcare services in the days ahead.
UHS consistently resorts to service launches, upgradation of existing services, physician recruitment and exerting financial and operational controls to boost the operating revenues and profitability of owned hospitals. It also relies on acquisitions for strenghtening its healthcare delivery capabilities and gaining access to new markets.
The healthcare provider does not shy away from selling assets or businesses that do not provide an impetus to its growth or operating strategy.
Universal Health boasts a solid financial standing backed by a strong cash balance and adequate cash-generating abilities. As of Mar 31, 2023, its cash and cash equivalents climbed 7% from the 2022-end level. UHS leverages its financial strength to undertake growth-related initiatives and engage in active capital deployment records to shareholders.
The leverage ratio of UHS is improving. Its total debt- to total capital of 44.3% at the first-quarter end remains significantly lower than the industry’s average of 94.5%.
Stocks to Consider
Some better-ranked stocks in the Medical space include Ligand Pharmaceuticals (LGND - Free Report) , Masimo Corporation (MASI - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) . Ligand Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy), and Masimo and Ensign Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand Pharmaceuticals’ earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average surprise being 21.50%. The Zacks Consensus Estimate for LGND’s 2023 earnings indicates a rise of 9.6 from the respective year-ago actuals. The consensus mark for LGND’s 2023 earnings has moved 26.2% north in the past 30 days.
The bottom line of Masimo beat estimates in each of the trailing four quarters, the average beat being 9.95%. The Zacks Consensus Estimate for MASI’s 2023 earnings indicates a rise of 3.7%, while the same for revenues suggests an improvement of 19.7% from the respective prior-year tallies. The consensus mark for MASI’s 2023 earnings has moved 0.2% north in the past 60 days.
Ensign Group’s earnings outpaced estimates in one of the trailing four quarters, missed the mark once and matched the same in the remaining two occasions, the average surprise being 0.45%. The Zacks Consensus Estimate for ENSG’s 2023 earnings indicates a rise of 13.5%, while the same for revenues suggests an improvement of 22.2% from the respective year-ago actuals. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 30 days.
Shares of Masimo and Ensign Group have gained 14.1% and 12.7%, respectively, in a year. However, the Ligand Pharmaceuticals stock has declined 19.1% in the same time frame.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Universal Health Services, Inc. (UHS - Free Report) is well-poised for growth on the back of sustained top-line improvement, acquisitions, a diversified treatment network and rising cash reserves. A solid 2023 business outlook also acts as a tailwind for the company.
Zacks Rank & Price Performance
Universal Health currently carries a Zacks Rank #3 (Hold).
The stock has risen 8.8% in a year compared with the industry’s 18.6% growth. The Zacks Medical sector has declined 10.5% but the S&P 500 composite has gained 2.9% in the same time frame.
Favorable Style Score
UHS is well-poised for progress, as evidenced by its impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.
Robust Growth Prospects
The Zacks Consensus Estimate for Universal Health’s 2023 earnings is pegged at $10.27 per share, suggesting 4% growth from the prior-year figure. The same for revenues stands at $14.1 billion, which indicates an improvement of 5.4% from the year-earlier reading.
The consensus mark for 2024 earnings is pegged at $11.48 per share, suggesting 11.9% growth from the 2023 estimate. The same for revenues stands at $14.7 billion, which implies a 3.8% rise from the 2023 estimate.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 earnings has been revised upward 0.3% in the past 30 days.
Impressive Earnings Surprise History
The bottom line of Universal Health outpaced earnings estimates in each of the trailing four quarters, the average surprise being 5.62%.
A Favorable 2023 Outlook
UHS anticipates revenues within $14,044-$14,314 million this year, the midpoint of which indicates roughly a 4.8-6.8% increase from the 2022 level.
Adjusted earnings per share are estimated to lie between $9.50 and $10.50, the midpoint of which suggests 1.2% growth from the 2022 figure.
Business Tailwinds
After witnessing a CAGR of 7.6% over the past 12 years (2010-2022), the top line of Universal Health improved 5.3% in the first quarter of 2023 as well. The top line continues to benefit on the back of an expansive care network and solid contributions from the Acute Care Hospital Services and Behavioral Health Care Services segments.
Universal Health’s diversified treatment network comprises 358 inpatient facilities and 40 outpatient and other facilities stretched throughout 39 states, Washington, D.C., the U.K. and Puerto Rico as of Mar 31, 2023.
Higher admissions and patient days also contribute favorably to the segments’ performance. Continuous incidence of mental health issues among Americans is likely to sustain the solid demand for UHS’s behavioral healthcare services in the days ahead.
UHS consistently resorts to service launches, upgradation of existing services, physician recruitment and exerting financial and operational controls to boost the operating revenues and profitability of owned hospitals. It also relies on acquisitions for strenghtening its healthcare delivery capabilities and gaining access to new markets.
The healthcare provider does not shy away from selling assets or businesses that do not provide an impetus to its growth or operating strategy.
Universal Health boasts a solid financial standing backed by a strong cash balance and adequate cash-generating abilities. As of Mar 31, 2023, its cash and cash equivalents climbed 7% from the 2022-end level. UHS leverages its financial strength to undertake growth-related initiatives and engage in active capital deployment records to shareholders.
The leverage ratio of UHS is improving. Its total debt- to total capital of 44.3% at the first-quarter end remains significantly lower than the industry’s average of 94.5%.
Stocks to Consider
Some better-ranked stocks in the Medical space include Ligand Pharmaceuticals (LGND - Free Report) , Masimo Corporation (MASI - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) . Ligand Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy), and Masimo and Ensign Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand Pharmaceuticals’ earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average surprise being 21.50%. The Zacks Consensus Estimate for LGND’s 2023 earnings indicates a rise of 9.6 from the respective year-ago actuals. The consensus mark for LGND’s 2023 earnings has moved 26.2% north in the past 30 days.
The bottom line of Masimo beat estimates in each of the trailing four quarters, the average beat being 9.95%. The Zacks Consensus Estimate for MASI’s 2023 earnings indicates a rise of 3.7%, while the same for revenues suggests an improvement of 19.7% from the respective prior-year tallies. The consensus mark for MASI’s 2023 earnings has moved 0.2% north in the past 60 days.
Ensign Group’s earnings outpaced estimates in one of the trailing four quarters, missed the mark once and matched the same in the remaining two occasions, the average surprise being 0.45%. The Zacks Consensus Estimate for ENSG’s 2023 earnings indicates a rise of 13.5%, while the same for revenues suggests an improvement of 22.2% from the respective year-ago actuals. The consensus mark for ENSG’s 2023 earnings has moved 0.2% north in the past 30 days.
Shares of Masimo and Ensign Group have gained 14.1% and 12.7%, respectively, in a year. However, the Ligand Pharmaceuticals stock has declined 19.1% in the same time frame.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
Get the latest research report on UHS - FREE
Get the latest research report on MASI - FREE
Get the latest research report on LGND - FREE
Get the latest research report on ENSG - FREE