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Here's Why You Should Retain HCA Healthcare (HCA) Stock Now
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HCA Healthcare, Inc. (HCA - Free Report) continues to benefit from growing patient admissions, acquisitions and a solid financial position.
Zacks Rank & Price Performance
HCA Healthcare carries a Zacks Rank #3 (Hold) at present.
The stock has gained 35.9% in the past six months compared with the industry’s 29.4% growth. The Medical sector and the S&P 500 composite index have increased 2.8% and 7.5%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
HCA 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 HCA’s 2023 earnings is pegged at $17.16 per share, indicating an improvement of 1.6% from the year-earlier reading, while the same for revenues stands at $62.6 billion, implying a 3.9% increase from the prior-year actual.
The consensus mark for 2024 earnings is pegged at $19.24 per share, suggesting 12.1% growth from the 2023 estimate. The same for revenues stands at $65.9 billion, which indicates a rise of 5.3% from the 2023 estimate.
Decent Surprise History
HCA’s earnings outpaced estimates in two of the trailing four quarters and missed the same twice, the average being 2.28%.
Business Tailwinds
The top line of HCA Healthcare is aided by improved patient volumes, which is the most significant contributor to a hospital’s revenues. Patient volumes witnessed an uptick due to increased inpatient surgeries as well as diminishing adverse effects of the COVID pandemic resulting in higher outpatient visits. Same-facility equivalent admissions are anticipated to grow in the range of 2-3% in 2023, while revenue per equivalent admissions is estimated to witness around 2% improvement.
A series of acquisitions undertaken over the years have expanded HCA’s healthcare portfolio, diversified income streams and bolstered the nationwide presence of the company. The healthcare provider spends a substantial amount on buyouts of hospitals and health-care entities and in 2022, the amount spent was $224 million. HCA operated 182 hospitals and approximately 2,300 ambulatory sites of care at 2022-end.
HCA Healthcare also extends telehealth services that can be availed within the comfort of one’s home. To address the growing incidence of behavioral health issues among Americans, it has five psychiatric hospitals in place. HCA Healthcare seems prudent to shed off non-core businesses and focus on more profitable units.
The healthcare provider boasts sufficient cash reserves and adequate cash-generation abilities that are immensely required to pursue business growth initiatives and deploy capital. As of Dec 31, 2022, cash and cash equivalents stood at $908 million, which is way higher than the short-term debt of $370 million. In January 2023, management approved a 7.1% increase in the quarterly dividend.
Lantheus’ earnings surpassed estimates in each of the last four quarters, the average being 50.00%. The Zacks Consensus Estimate for LNTH’s 2023 earnings indicates a 13.5% rise, while the same for revenues suggests an improvement of 24.3% from the respective prior-year tallies. The consensus mark for LNTH’s 2023 earnings has moved 12.7% north in the past 30 days.
The bottom line of Addus HomeCare outpaced estimates in each of the trailing four quarters, the average being 4.49%. The Zacks Consensus Estimate for ADUS’s 2023 earnings indicates a 9.4% rise, while the same for revenues suggests an improvement of 8.2% from the respective prior-year figures. The consensus mark for ADUS’s 2023 earnings has moved 1.7% north in the past 30 days.
Cytek Biosciences’ earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average being 47.50%. The Zacks Consensus Estimate for CTKB’s 2023 earnings indicates a 66.7% rise, while the same for revenues suggests an improvement of 39.4% from the respective prior-year tallies. The consensus mark for CTKB’s 2023 earnings has moved up 31.6% in the past 30 days.
Shares of Lantheus and Addus HomeCare have gained 24.5% and 7.9%, respectively, in the past six months. However, the Cytek Biosciences stock has lost 28.6% in the same time frame.
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Here's Why You Should Retain HCA Healthcare (HCA) Stock Now
HCA Healthcare, Inc. (HCA - Free Report) continues to benefit from growing patient admissions, acquisitions and a solid financial position.
Zacks Rank & Price Performance
HCA Healthcare carries a Zacks Rank #3 (Hold) at present.
The stock has gained 35.9% in the past six months compared with the industry’s 29.4% growth. The Medical sector and the S&P 500 composite index have increased 2.8% and 7.5%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
HCA 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 HCA’s 2023 earnings is pegged at $17.16 per share, indicating an improvement of 1.6% from the year-earlier reading, while the same for revenues stands at $62.6 billion, implying a 3.9% increase from the prior-year actual.
The consensus mark for 2024 earnings is pegged at $19.24 per share, suggesting 12.1% growth from the 2023 estimate. The same for revenues stands at $65.9 billion, which indicates a rise of 5.3% from the 2023 estimate.
Decent Surprise History
HCA’s earnings outpaced estimates in two of the trailing four quarters and missed the same twice, the average being 2.28%.
Business Tailwinds
The top line of HCA Healthcare is aided by improved patient volumes, which is the most significant contributor to a hospital’s revenues. Patient volumes witnessed an uptick due to increased inpatient surgeries as well as diminishing adverse effects of the COVID pandemic resulting in higher outpatient visits. Same-facility equivalent admissions are anticipated to grow in the range of 2-3% in 2023, while revenue per equivalent admissions is estimated to witness around 2% improvement.
A series of acquisitions undertaken over the years have expanded HCA’s healthcare portfolio, diversified income streams and bolstered the nationwide presence of the company. The healthcare provider spends a substantial amount on buyouts of hospitals and health-care entities and in 2022, the amount spent was $224 million. HCA operated 182 hospitals and approximately 2,300 ambulatory sites of care at 2022-end.
HCA Healthcare also extends telehealth services that can be availed within the comfort of one’s home. To address the growing incidence of behavioral health issues among Americans, it has five psychiatric hospitals in place. HCA Healthcare seems prudent to shed off non-core businesses and focus on more profitable units.
The healthcare provider boasts sufficient cash reserves and adequate cash-generation abilities that are immensely required to pursue business growth initiatives and deploy capital. As of Dec 31, 2022, cash and cash equivalents stood at $908 million, which is way higher than the short-term debt of $370 million. In January 2023, management approved a 7.1% increase in the quarterly dividend.
Stocks to Consider
Some top-ranked stocks in the Medical space are Lantheus Holdings, Inc. (LNTH - Free Report) , Addus HomeCare Corporation (ADUS - Free Report) and Cytek Biosciences, Inc. (CTKB - Free Report) . While Lantheus sports a Zacks Rank #1 (Strong Buy), Addus HomeCare and Cytek Biosciences carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lantheus’ earnings surpassed estimates in each of the last four quarters, the average being 50.00%. The Zacks Consensus Estimate for LNTH’s 2023 earnings indicates a 13.5% rise, while the same for revenues suggests an improvement of 24.3% from the respective prior-year tallies. The consensus mark for LNTH’s 2023 earnings has moved 12.7% north in the past 30 days.
The bottom line of Addus HomeCare outpaced estimates in each of the trailing four quarters, the average being 4.49%. The Zacks Consensus Estimate for ADUS’s 2023 earnings indicates a 9.4% rise, while the same for revenues suggests an improvement of 8.2% from the respective prior-year figures. The consensus mark for ADUS’s 2023 earnings has moved 1.7% north in the past 30 days.
Cytek Biosciences’ earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average being 47.50%. The Zacks Consensus Estimate for CTKB’s 2023 earnings indicates a 66.7% rise, while the same for revenues suggests an improvement of 39.4% from the respective prior-year tallies. The consensus mark for CTKB’s 2023 earnings has moved up 31.6% in the past 30 days.
Shares of Lantheus and Addus HomeCare have gained 24.5% and 7.9%, respectively, in the past six months. However, the Cytek Biosciences stock has lost 28.6% in the same time frame.