HCA Healthcare (HCA) Rises 24% in a Year: More Room to Run?
Shares of HCA Healthcare, Inc. HCA have gained 24.4% in a year, compared with the industry’s 18.3% growth. The Medical sector fell 6.4% but the S&P 500 composite index rose 4.2% in the same time frame. With a market capitalization of $73.3 billion, the average volume of shares traded in the last three months was 1.3 million.
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An increase in patient volumes, acquisitions of hospitals or healthcare entities and a notable financial position continue to drive HCA Healthcare.
The leading U.S. healthcare services provider, presently carrying a Zacks Rank #2 (Buy), has a decent track record of beating estimates in three of the trailing four quarters and missing the same once, the average beat being 5.42%.
Can HCA Retain the Momentum?
The Zacks Consensus Estimate for HCA Healthcare’s 2023 earnings is pegged at $18.43 per share, which implies an improvement of 9.1% from the 2022 reported figure. The same for revenues stands at $63.9 billion, suggesting 6.1% growth from the year-ago figure. It has witnessed seven upward estimate revisions compared to none for 2023 earnings over the past 30 days.
The consensus estimate for 2024 earnings is pegged at $20.20 per share, which indicates a rise of 9.6% from the 2023 estimate. The same for revenues stands at $67.1 billion, hinting at 5% growth from the 2023 estimate.
For a healthcare facility operator, expanding patient volumes remain the most significant contributor to its top line. Revenues of HCA Healthcare witnessed an uptick in the first half of 2023 on the back of 2.6% growth in admissions. Management forecasts 2023 revenues to be in the band of $63.25-$64.75 billion, the midpoint of which indicates growth of 6.3% from the 2022 reported figure.
An increase in the number of inpatient and outpatient surgeries in the first half of 2023 implies greater occupancy levels and the favorable trend is expected to sustain in the days ahead, owing to the resumption of pent-up elective procedures.
In order to meet the growing demand for virtual care, as a result of its convenience and affordability, HCA is equipped with effective telehealth services. Such services also offer it an opportunity to diversify income streams.
An array of buyouts undertaken over the years reflect HCA Healthcare’s focus to boost its clinical capabilities and fortify its presence across existing markets. As of Jun 30, 2023, its healthcare portfolio comprised 182 hospitals and roughly 2,300 ambulatory sites of care stretched across 20 states and the United Kingdom.
A solid financial position empowers HCA to continuously undertake growth-related initiatives as well as engage in the prudent deployment of capital through share buybacks and dividend payments. A sound cash balance and robust cash-generating abilities bear testament to its remarkable financial stand. Net cash from operating activities surged 43.8% year over year in the first half of 2023. Management hiked its quarterly dividend by 7.1% this January. Its dividend yield of 0.9% remains higher than the industry’s figure of 0.7%.
HCA Healthcare boasts an impressive VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Other Stocks to Consider
Some other top-ranked stocks in the Medical space are Amphastar Pharmaceuticals, Inc. AMPH, IRadimed Corporation IRMD and Penumbra, Inc. PEN, each 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 the Zacks Consensus Estimate in three of the last four quarters and matched the mark once, the average beat being 35.98%. The Zacks Consensus Estimate for AMPH’s 2023 earnings suggests a surge of 36.6%, while the same for revenues indicates growth of 28.5% from the respective year-ago reported figures.
The consensus estimate for AMPH’s 2023 earnings has moved 5.1% north in the past 30 days. Shares of Amphastar Pharmaceuticals have gained 65.4% in the past year.
IRadimed’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.83%. The Zacks Consensus Estimate for IRMD’s 2023 earnings indicates a rise of 26.4%, while the same for revenues suggests an improvement of 22% from the corresponding year-ago reported estimates.
The consensus estimate for IRMD’s 2023 earnings has moved 6.1% north in the past seven days. Shares of IRadimed have gained 21.1% in a year.
Penumbra’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 94.24%. The Zacks Consensus Estimate for PEN’s 2023 earnings is pegged at $1.75 per share, which indicates an increase of nearly 11-fold from the prior-year reported figure. The same for revenues indicates growth of 25.2% from the year-ago reported figure.
The Zacks Consensus Estimate for PEN’s 2023 earnings has moved 12.2% north in the past 30 days. Shares of Penumbra have rallied 42.9% in the past year.
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Amphastar Pharmaceuticals, Inc. (AMPH) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
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