In a note this morning to investors, Wells Fargo wrote that several hospital stocks are "significantly undervalued," given the decision by the Supreme Court yesterday to uphold the main parts of the healthcare insurance law. Wells, which believes that the hospitals will benefit significantly from expanded insurance coverage, reacted to the court's decision by upgrading hospital operators Community Health (CYH), Tenet Healthcare (THC), and Vanguard Health Systems (VHS) to Outperform from Market Perform. The firm thinks that these hospitals will benefit the most from the implementation of the healthcare law. Wells contended that, before today's open, the shares of Community Health, Tenet Healthcare, and Vanguard were undervalued by 53%, 37%, and 42%, respectively. Meanwhile, the firm raised its valuation ranges for hospital operators HCA holdings (HCA) and Health Management Association (HMA), as the firm thought that those companies were undervalued by 26% and 24% before today's open. Meanwhile, Wells sees only a limited chance that significant changes will be made to the law next year. In early trading, Community Health rose 1.89% to $28.06, Tenet added 0.38% to $5.27, Vanguard climbed 6.75% to $8.86, HCA gained 4.24% to $30.72, and Health Management rose 4.14% to $7.80.
Chairman Ben Bernanke is telling Congress Wednesday that the U.S. job market remains weak and that it is too soon …