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Factors That Make HCA Healthcare (HCA) a Lucrative Bet Now
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HCA Healthcare, Inc. (HCA - Free Report) is aided by improved patient volumes, acquisitions of healthcare facilities and a commendable financial position. A positive business outlook for 2023 reinforces investors’ confidence in the stock.
Top Zacks Rank & Upbeat Price Performance
HCA Healthcare currently carries a Zacks Rank #2 (Buy).
The stock has soared 67.7% in a year, compared with the industry’s 53.7% growth. The Zacks Medical sector has declined 6.8% but the S&P 500 composite has risen 13.9% in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
HCA Healthcare carries an impressive Value Score of A. Value Score helps find stocks that are undervalued. Back-tested results have shown so far that stocks with a favorable Value Score in combination with a solid Zacks Rank are the best investment bets.
Robust Prospects
The Zacks Consensus Estimate for HCA’s 2023 earnings is pegged at $18.10 per share, suggesting growth of 7.2% from the prior-year reported figure. The consensus mark for revenues stands at $63.4 billion, implying a rise of 5.3% from the year-ago reported number.
The consensus mark for 2024 earnings is pegged at $19.69 per share, indicating an improvement of 8.8% from the prior-year estimate. The same for revenues stands at $66.7 billion, hinting at a 5.2% increase from the year-ago estimate.
Decent Earnings Surprise History
HCA Healthcare’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.04%.
A Strong View for 2023
HCA forecasts revenues within $62.5-$64.5 billion this year, the midpoint of which suggests 5.5% growth from the 2022 figure.
Earnings per share are anticipated between $17.25 and $18.55, the midpoint of which indicates an improvement of 6% from the 2022 level.
Key Business Tailwinds
Witnessing a CAGR of 6.2% over the past decade (2012-2022), the top line of HCA Healthcare continues to benefit on the back of a growing patient base. At the Goldman Sachs Global Healthcare Conference, an official of UnitedHealth Group (UNH - Free Report) hinted toward the resumption of pent-up elective procedures, which were earlier temporarily put on hold due to COVID-induced volatilities. This brings a ray of hope for healthcare facility operators like HCA Healthcare.
Higher elective surgeries will bring about improved inpatient occupancy levels, thereby boosting the revenues of HCA Healthcare. Growing outpatient and emergency room visits are likely to continue providing an impetus to its top-line growth.
A series of acquisitions undertaken over the years have broadened HCA’s healthcare portfolio, diversified income streams and expanded the nationwide presence of the hospital operator. In May 2023, the buyout of 41 urgent care centers located in Texas from FastMed, a private healthcare service provider, bore testament to HCA’s efforts to solidify its urgent care operations and expand its footprint across the state. The transaction is expected to be completed by this summer.
To enable patients to receive enhanced healthcare services within the comfort of their home, the company has devised a solid telehealth services suite in place. HCA Healthcare also operates psychiatric hospitals in order to address the growing incidence of mental health issues among Americans.
To pursue uninterrupted growth-related initiatives, a solid financial position is a dire need. The same is the case with HCA Healthcare which contains sufficient cash reserves and solid cash-generation abilities. It generated operating cash flows of $1,803 million in the first quarter of 2023, up 34.1% year over year. Robust cash flows also enable it to tactically deploy capital via share buybacks and dividend payments. Management approved a 7.1% increase in the quarterly dividend in January 2023.
Amphastar Pharmaceuticals’ earnings surpassed estimates in three of the last four quarters and matched the mark once, the average surprise being 33.83%. The Zacks Consensus Estimate for AMP’s 2023 earnings indicates a rise of 22.8%, while the same for revenues suggests an improvement of 17.4% from the respective year-ago actuals. The consensus mark for AMP’s 2023 earnings has moved 1.7% north in the past 30 days.
Penumbra’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. The Zacks Consensus Estimate for PEN’s 2023 earnings is pegged at $1.56 per share, which indicates a nearly 10-fold increase from the prior-year actual. The same for revenues suggests an improvement of 24.1% from the year-ago actual. The consensus mark for PEN’s 2023 earnings has moved 24.8% north in the past 60 days.
Shares of Amphastar Pharmaceuticals and Penumbra have gained 67.4% and 155.6%, respectively, in a year.
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Factors That Make HCA Healthcare (HCA) a Lucrative Bet Now
HCA Healthcare, Inc. (HCA - Free Report) is aided by improved patient volumes, acquisitions of healthcare facilities and a commendable financial position. A positive business outlook for 2023 reinforces investors’ confidence in the stock.
Top Zacks Rank & Upbeat Price Performance
HCA Healthcare currently carries a Zacks Rank #2 (Buy).
The stock has soared 67.7% in a year, compared with the industry’s 53.7% growth. The Zacks Medical sector has declined 6.8% but the S&P 500 composite has risen 13.9% in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
HCA Healthcare carries an impressive Value Score of A. Value Score helps find stocks that are undervalued. Back-tested results have shown so far that stocks with a favorable Value Score in combination with a solid Zacks Rank are the best investment bets.
Robust Prospects
The Zacks Consensus Estimate for HCA’s 2023 earnings is pegged at $18.10 per share, suggesting growth of 7.2% from the prior-year reported figure. The consensus mark for revenues stands at $63.4 billion, implying a rise of 5.3% from the year-ago reported number.
The consensus mark for 2024 earnings is pegged at $19.69 per share, indicating an improvement of 8.8% from the prior-year estimate. The same for revenues stands at $66.7 billion, hinting at a 5.2% increase from the year-ago estimate.
Decent Earnings Surprise History
HCA Healthcare’s bottom line outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.04%.
A Strong View for 2023
HCA forecasts revenues within $62.5-$64.5 billion this year, the midpoint of which suggests 5.5% growth from the 2022 figure.
Earnings per share are anticipated between $17.25 and $18.55, the midpoint of which indicates an improvement of 6% from the 2022 level.
Key Business Tailwinds
Witnessing a CAGR of 6.2% over the past decade (2012-2022), the top line of HCA Healthcare continues to benefit on the back of a growing patient base. At the Goldman Sachs Global Healthcare Conference, an official of UnitedHealth Group (UNH - Free Report) hinted toward the resumption of pent-up elective procedures, which were earlier temporarily put on hold due to COVID-induced volatilities. This brings a ray of hope for healthcare facility operators like HCA Healthcare.
Higher elective surgeries will bring about improved inpatient occupancy levels, thereby boosting the revenues of HCA Healthcare. Growing outpatient and emergency room visits are likely to continue providing an impetus to its top-line growth.
A series of acquisitions undertaken over the years have broadened HCA’s healthcare portfolio, diversified income streams and expanded the nationwide presence of the hospital operator. In May 2023, the buyout of 41 urgent care centers located in Texas from FastMed, a private healthcare service provider, bore testament to HCA’s efforts to solidify its urgent care operations and expand its footprint across the state. The transaction is expected to be completed by this summer.
To enable patients to receive enhanced healthcare services within the comfort of their home, the company has devised a solid telehealth services suite in place. HCA Healthcare also operates psychiatric hospitals in order to address the growing incidence of mental health issues among Americans.
To pursue uninterrupted growth-related initiatives, a solid financial position is a dire need. The same is the case with HCA Healthcare which contains sufficient cash reserves and solid cash-generation abilities. It generated operating cash flows of $1,803 million in the first quarter of 2023, up 34.1% year over year. Robust cash flows also enable it to tactically deploy capital via share buybacks and dividend payments. Management approved a 7.1% increase in the quarterly dividend in January 2023.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space are Amphastar Pharmaceuticals, Inc. (AMPH - Free Report) and Penumbra, Inc. (PEN - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphastar Pharmaceuticals’ earnings surpassed estimates in three of the last four quarters and matched the mark once, the average surprise being 33.83%. The Zacks Consensus Estimate for AMP’s 2023 earnings indicates a rise of 22.8%, while the same for revenues suggests an improvement of 17.4% from the respective year-ago actuals. The consensus mark for AMP’s 2023 earnings has moved 1.7% north in the past 30 days.
Penumbra’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. The Zacks Consensus Estimate for PEN’s 2023 earnings is pegged at $1.56 per share, which indicates a nearly 10-fold increase from the prior-year actual. The same for revenues suggests an improvement of 24.1% from the year-ago actual. The consensus mark for PEN’s 2023 earnings has moved 24.8% north in the past 60 days.
Shares of Amphastar Pharmaceuticals and Penumbra have gained 67.4% and 155.6%, respectively, in a year.