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Universal Health (UHS) Gains 3.7% as Pent-Up Surgeries Rise
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Universal Health Services, Inc. (UHS - Free Report) shares jumped 3.7% yesterday after encouraging views for hospital stocks were shared by healthcare juggernaut UnitedHealth Group Incorporated (UNH - Free Report) . Tim Noel, chief executive officer for Medicare and Retirement in UnitedHealth pointed out at the Goldman Sachs Global Healthcare Conference that seniors are now undergoing elective surgeries, which were delayed due to pandemic-related constraints.
Pent-up demand for procedures like hip and knee surgeries are expected to boost hospitals’ occupancy rate, which will aid their revenues. Companies providing surgeries and medical equipment are expected to gain from the resumption of elective procedures.
Similar to Universal Health, other companies in the Zacks Medical - Hospital space like Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) also witnessed a share price increase yesterday. On the flipside, UnitedHealth fell 6.4% yesterday while Humana declined 11.2%.
Universal Health operates acute care facilities, and outpatient as well as behavioral health care units. Its plans to add new capacities to hospitals in important markets like Texas and California will likely create further opportunities for the company. The demand for elective surgeries is expected to improve UHS’ patient admissions and patient days.
Its Acute Care Hospital Services witnessed adjusted admissions growth of 10.5% year over year on a same-facility basis in the first quarter, whereas adjusted patient days increased 3.7%. Net revenues derived from this segment witnessed a 3.5% year-over-year uptick on a same-facility basis in the March quarter. Given the current market condition, UHS is expected to continue witnessing this growth in the coming days.
However, rising procedure figures can increase the company’s operating costs, trimming its margins. Hospitals in North America are on the path of gradually improving from the shortage of nurses and other medical personnel. It is to be seen how these companies navigate through the pent-up demand.
Year-to-date Price Performance & Zacks Rank
Universal Health shares have gained 3.7% in the year-to-date period compared with the industry’s 13.3% jump. It currently has a Zacks Rank #3 (Hold).
Image: Bigstock
Universal Health (UHS) Gains 3.7% as Pent-Up Surgeries Rise
Universal Health Services, Inc. (UHS - Free Report) shares jumped 3.7% yesterday after encouraging views for hospital stocks were shared by healthcare juggernaut UnitedHealth Group Incorporated (UNH - Free Report) . Tim Noel, chief executive officer for Medicare and Retirement in UnitedHealth pointed out at the Goldman Sachs Global Healthcare Conference that seniors are now undergoing elective surgeries, which were delayed due to pandemic-related constraints.
Pent-up demand for procedures like hip and knee surgeries are expected to boost hospitals’ occupancy rate, which will aid their revenues. Companies providing surgeries and medical equipment are expected to gain from the resumption of elective procedures.
Similar to Universal Health, other companies in the Zacks Medical - Hospital space like Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) also witnessed a share price increase yesterday. On the flipside, UnitedHealth fell 6.4% yesterday while Humana declined 11.2%.
Universal Health operates acute care facilities, and outpatient as well as behavioral health care units. Its plans to add new capacities to hospitals in important markets like Texas and California will likely create further opportunities for the company. The demand for elective surgeries is expected to improve UHS’ patient admissions and patient days.
Its Acute Care Hospital Services witnessed adjusted admissions growth of 10.5% year over year on a same-facility basis in the first quarter, whereas adjusted patient days increased 3.7%. Net revenues derived from this segment witnessed a 3.5% year-over-year uptick on a same-facility basis in the March quarter. Given the current market condition, UHS is expected to continue witnessing this growth in the coming days.
However, rising procedure figures can increase the company’s operating costs, trimming its margins. Hospitals in North America are on the path of gradually improving from the shortage of nurses and other medical personnel. It is to be seen how these companies navigate through the pent-up demand.
Year-to-date Price Performance & Zacks Rank
Universal Health shares have gained 3.7% in the year-to-date period compared with the industry’s 13.3% jump. It currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research