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HCA Healthcare (HCA) Dips More Than Broader Market: What You Should Know

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HCA Healthcare (HCA - Free Report) closed at $313.20 in the latest trading session, marking a -0.68% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Prior to today's trading, shares of the hospital operator had gained 11.27% over the past month. This has outpaced the Medical sector's gain of 5.53% and the S&P 500's gain of 4.74% in that time.

Analysts and investors alike will be keeping a close eye on the performance of HCA Healthcare in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.90, showcasing a 0.61% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $16.76 billion, reflecting a 7.52% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.37 per share and a revenue of $68.97 billion, representing changes of +7.15% and +6.17%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for HCA Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.63% increase. HCA Healthcare is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, HCA Healthcare is currently trading at a Forward P/E ratio of 15.48. This signifies a discount in comparison to the average Forward P/E of 15.58 for its industry.

Also, we should mention that HCA has a PEG ratio of 1.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Hospital was holding an average PEG ratio of 1.77 at yesterday's closing price.

The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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