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HCA Healthcare (HCA) Gains As Market Dips: What You Should Know

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HCA Healthcare (HCA - Free Report) closed at $171.69 in the latest trading session, marking a +0.05% move from the prior day. This move outpaced the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the hospital operator had lost 0.86% in the past month. In that same time, the Medical sector gained 6.79%, while the S&P 500 gained 2.02%.

Wall Street will be looking for positivity from HCA Healthcare as it approaches its next earnings report date. This is expected to be July 22, 2022. On that day, HCA Healthcare is projected to report earnings of $3.67 per share, which would represent a year-over-year decline of 16.02%. Meanwhile, our latest consensus estimate is calling for revenue of $14.82 billion, up 2.69% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.57 per share and revenue of $60.7 billion, which would represent changes of -5.31% and +3.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for HCA Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.42% lower. HCA Healthcare is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, HCA Healthcare is holding a Forward P/E ratio of 10.36. This represents a discount compared to its industry's average Forward P/E of 10.51.

It is also worth noting that HCA currently has a PEG ratio of 1.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.

The Medical - Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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