Universal Health Up 46% in a Year: Is it the Right Time to Invest?

Zacks12-05

Universal Health Services, Inc.’s UHS shares have surged 45.6% in the past year compared with the industry’s 28.7% growth. It has also outperformed the broader Zacks Medical sector’s 5.4% growth and ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2489614923?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/ZcqDt7bCeBMLkGs_KJ1O8A--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/228e67967b066e7a755ae3614be720e1","is_english":true,"pubTime":"2024-12-05 02:02","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2489614923","market":"us","top_or_hot":-1,"title":"Universal Health Up 46% in a Year: Is it the Right Time to Invest?","media":"Zacks","content":"<div>\n<p>Universal Health Services, Inc.’s UHS shares have surged 45.6% in the past year compared with the industry’s 28.7% growth. It has also outperformed the broader Zacks Medical sector’s 5.4% growth and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/universal-health-46-time-invest-180200854.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Universal Health Up 46% in a Year: Is it the Right Time to Invest?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUniversal Health Up 46% in a Year: Is it the Right Time to Invest?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-05 02:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/universal-health-46-time-invest-180200854.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Universal Health Services, Inc.’s UHS shares have surged 45.6% in the past year compared with the industry’s 28.7% growth. It has also outperformed the broader Zacks Medical sector’s 5.4% growth and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/universal-health-46-time-invest-180200854.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B3S45H60.SGD","symbol_name":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/universal-health-46-time-invest-180200854.html","article_id":"2489614923","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZcqDt7bCeBMLkGs_KJ1O8A--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/228e67967b066e7a755ae3614be720e1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489614923","pubTimestamp":1733335320,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Universal Health Services, Inc.’s UHS shares have surged 45.6% in the past year compared with the industry’s 28.7% growth. It has also outperformed the broader Zacks Medical sector’s 5.4% growth and the S&P 500’s 32.8% increase in the said time frame.The company has been benefiting on the back of strong segmental contributions, increased patient days, a diversified treatment network and robust cash flows. Closing at $198.34 in the last trading session, the stock has a market cap of $13.1 billion.The Zacks Consensus Estimate for 2024 earnings is currently pegged at $15.88 per share, indicating year-over-year growth of 50.7%. The estimate for 2025 earnings implies a year-over-year increase of 11.4%. It beat earnings estimates in three of the last four quarters and missed the mark once, the average surprise being 12.07%. Mor","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","HCA":"HCA控股","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU1119994496.HKD":"FIDELITY WORLD \"A\" (HKD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU2324357040.USD":"HSBC GIF GLOBAL EQUITY SUSTAINABLE HEALTHCARE \"AC\" (USD) ACC","LU2244417387.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) ACC","LU0963586101.USD":"ALLIANZ GLOBAL SMALL CAP EQUITY \"AT\" ACC","BK4585":"ETF&股票定投概念","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0114720955.EUR":"SUSTAINABLE GLOBAL HEALTH CARE \"A\" INC","SG9999014005.SGD":"United Global Durable Equities Fund Acc SGD","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","SG9999014013.SGD":"United Global Durable Equities Fund Dis SGD","LU1261432733.SGD":"Fidelity World A-ACC-SGD","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","THC":"泰尼特","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","UHS":"Universal Health Services Inc Cl","LU1150488218.USD":"First Eagle Amundi Income Builder AU2-MD USD","CYH":"Community Health Systems Inc","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","BK4588":"碎股","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","LU1267930573.SGD":"TEMPLETON GLOBAL \"AA\" (SGD) ACC A","LU0882574055.USD":"富达全球健康医疗A ACC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU1150488135.SGD":"First Eagle Amundi Income Builder AHS-MD SGD-H","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","LU1084165304.USD":"FIDELITY WORLD \"A\" (USD) ACC","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","LU0985489474.SGD":"First Eagle Amundi International AHS-C SGD-H","SG9999014039.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) INC","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","SG9999014021.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) ACC","BK4504":"桥水持仓","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","LU0708994859.HKD":"TEMPLETON GLOBAL \"A\" (HKD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0029864427.USD":"TEMPLETON GLOBAL \"A\" (USD) INC","BK4185":"保健护理机构"},"translate_title":"Universal Health一年内上涨46%：现在是投资的正确时机吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"UHS":1,"THC":1,"CYH":1,"HCA":1},"content_text":"Universal Health Services, Inc.’s UHS shares have surged 45.6% in the past year compared with the industry’s 28.7% growth. It has also outperformed the broader Zacks Medical sector’s 5.4% growth and the S&P 500’s 32.8% increase in the said time frame. \nThe company has been benefiting on the back of strong segmental contributions, increased patient days, a diversified treatment network and robust cash flows. Closing at $198.34 in the last trading session, the stock has a market cap of $13.1 billion.\nImage Source: Zacks Investment Research\nGrowth Drivers for UHS\nUniversal Health continues to thrive, driven by robust performance in its Acute Care Hospital Services and Behavioral Health Care Services segments. This success is supported by a diverse treatment network and strong cash flows. Revenue growth has been fueled by increased patient volumes and higher patient days. In the first nine months of 2024, adjusted admissions in acute care hospitals rose 3.1% year over year on a same-facility basis, while adjusted patient days at behavioral health facilities inched up 1.7%. \nManagement forecasts net revenues for 2024 to range between $15.565 billion and $15.753 billion, the midpoint of which indicates growth of 9.6% compared with the 2023 figure.\nThe resumption of elective procedures, postponed during the pandemic, is expected to enhance patient volumes and occupancy rates. This resurgence is a significant revenue driver for healthcare operators. In addition to UHS, HCA Healthcare, Inc. HCA, Tenet Healthcare Corporation THC and Community Health Systems, Inc. CYH will reap the benefits of this resumption. \nUHS’ inpatient behavioral healthcare facilities remain pivotal in addressing the rising prevalence of mental health issues across the United States. As of Sept. 30, 2024, UHS operated 361 inpatient and 49 outpatient and other facilities across 39 states, Washington D.C., the U.K. and Puerto Rico. The company remains committed to expanding its services, enhancing offerings, attracting top medical professionals and implementing rigorous financial and operational controls. These efforts contribute to improved service quality and profitability.\nA solid financial foundation underpins UHS’ growth initiatives. As of Sept. 30, 2024, cash and cash equivalents were $106.1 million. Operating cash flows in the first nine months of 2024 totaled $1.4 billion, which soared 72.8% from the prior-year comparable period. This financial strength also supports shareholder returns through consistent dividends and share repurchases. UHS has maintained a steady dividend of 20 cents per share since 2019.\nRobust Growth Prospects for Universal Health\nThe Zacks Consensus Estimate for 2024 earnings is currently pegged at $15.88 per share, indicating year-over-year growth of 50.7%. The estimate for 2025 earnings implies a year-over-year increase of 11.4%. It beat earnings estimates in three of the last four quarters and missed the mark once, the average surprise being 12.07%. Moreover, the consensus mark for 2024 and 2025 revenues indicates 9.8% and 6% year-over-year growth, respectively.\n\nUniversal Health Services, Inc. Price and EPS Surprise\n  \nUniversal Health Services, Inc. price-eps-surprise | Universal Health Services, Inc. Quote\n\nChallenges for UHS’ Business\nUniversal Health is grappling with rising operating expenses, which escalated 7.9% year over year during the first nine months of 2024. This increase resulted from higher costs for salaries, wages, benefits and other operating expenses. The persistent escalation in these expenses is likely to pressure profit margins in the future. Furthermore, the company's heavily leveraged balance sheet induces an increase in interest expenses.\nUniversal Health’s Valuation\nFrom a valuation perspective, Universal Health looks attractive. It is currently trading at a forward 12-month price/earnings (P/E) of 11.28X, a roughly 13% discount compared with the industry average of 12.88X.\nImage Source: Zacks Investment Research\nConclusion\nUniversal Health is experiencing growth driven by strong patient volumes, an increase in patient days and the resumption of elective procedures. Its diverse treatment network, emphasis on service expansion and healthy cash flows contribute to its growth trajectory and support shareholder returns. However, the company faces challenges, including rising operating expenses and a substantial debt load. While UHS is currently undervalued despite increasing share prices, investors are probably better off not buying the stock right now and waiting for a more favorable entry point. Those who already own the stock should hold on to it.\nUHS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant 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\nUniversal Health Services, Inc. (UHS) : Free Stock Analysis Report\nTenet Healthcare Corporation (THC) : Free Stock Analysis Report\nCommunity Health Systems, Inc. (CYH) : Free Stock Analysis Report\nHCA Healthcare, Inc. (HCA) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489614923"}