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Hospital Stocks' Q2 Earnings Lined Up for Jul 28: HCA, MD
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Medical is one of the seven sectors in the S&P 500 cohort that is expected to report earnings growth in the second quarter. The sector is likely to report earnings growth of 1.8% on revenue improvement of 7.7%.
We note that 126 S&P companies have already disclosed their numbers, with 70.6% of them beating the EPS estimates and 55.6% managing a revenue beat.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 3.4% (slightly better than the earlier estimated decline of 5.4%) from the year-ago quarter. Also, revenues are estimated to decline 0.5%.
Hospital is an important component of the Medical sector and is expected follow the same earnings growth trajectory in the quarter.
Here, we take a sneak peek at two Hospital stocks scheduled to report their second-quarter figures on Jul 28:
HCA Holdings Inc (HCA - Free Report) is one of the largest hospital operator in the U.S. Increasing admission rate, strong payer mix based on the implementation of the Affordable Care Act (Obamacare) and growing investments in trauma, cardiology and rehab services are likely to fortify the company’s market position.
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 (Hold) and Earnings ESP of -1.29%.
That is because, as per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
We also note that the results of HCA Holdings compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 9.04% (Read more: HCA Holdings Q2 Earnings: Uncertainty in the Cards?).
MEDNAX Inc (MD - Free Report) provides neonatal, anaesthesia, maternal-fetal and other physician and management services.
MEDNAX has made quite a few accretive acquisitions in the recent past, which is a significant growth driver. Moreover, the recent collaboration with IBM, in the formation of ‘Watson Health medical imaging collaborative’ is a noteworthy development as well.
Nevertheless, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 and Earnings ESP of 0.00%.
We note that MEDNAX’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 4.60%.
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Hospital Stocks' Q2 Earnings Lined Up for Jul 28: HCA, MD
Medical is one of the seven sectors in the S&P 500 cohort that is expected to report earnings growth in the second quarter. The sector is likely to report earnings growth of 1.8% on revenue improvement of 7.7%.
We note that 126 S&P companies have already disclosed their numbers, with 70.6% of them beating the EPS estimates and 55.6% managing a revenue beat.
As per the latest Zacks Earnings Trend report, overall second-quarter earnings for S&P 500 companies are expected to be down 3.4% (slightly better than the earlier estimated decline of 5.4%) from the year-ago quarter. Also, revenues are estimated to decline 0.5%.
Hospital is an important component of the Medical sector and is expected follow the same earnings growth trajectory in the quarter.
Here, we take a sneak peek at two Hospital stocks scheduled to report their second-quarter figures on Jul 28:
HCA Holdings Inc (HCA - Free Report) is one of the largest hospital operator in the U.S. Increasing admission rate, strong payer mix based on the implementation of the Affordable Care Act (Obamacare) and growing investments in trauma, cardiology and rehab services are likely to fortify the company’s market position.
HCA HOLDINGS Price and EPS Surprise
HCA HOLDINGS Price and EPS Surprise | HCA HOLDINGS Quote
However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #3 (Hold) and Earnings ESP of -1.29%.
That is because, as per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
We also note that the results of HCA Holdings compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 9.04% (Read more: HCA Holdings Q2 Earnings: Uncertainty in the Cards?).
MEDNAX Inc (MD - Free Report) provides neonatal, anaesthesia, maternal-fetal and other physician and management services.
MEDNAX has made quite a few accretive acquisitions in the recent past, which is a significant growth driver. Moreover, the recent collaboration with IBM, in the formation of ‘Watson Health medical imaging collaborative’ is a noteworthy development as well.
MEDNAX INC Price and EPS Surprise
MEDNAX INC Price and EPS Surprise | MEDNAX INC Quote
Nevertheless, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #2 and Earnings ESP of 0.00%.
We note that MEDNAX’s results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 4.60%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>