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Is Now An Opportune Moment To Examine HCA Healthcare, Inc. (NYSE:HCA)?

Simply Wall St

Today we're going to take a look at the well-established HCA Healthcare, Inc. (NYSE:HCA). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$146 at one point, and dropping to the lows of US$115. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether HCA Healthcare's current trading price of US$117 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at HCA Healthcare’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for HCA Healthcare

What's the opportunity in HCA Healthcare?

Good news, investors! HCA Healthcare is still a bargain right now. According to my valuation, the intrinsic value for the stock is $169.25, but it is currently trading at US$117 on the share market, meaning that there is still an opportunity to buy now. HCA Healthcare’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from HCA Healthcare?

NYSE:HCA Past and Future Earnings, October 9th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. HCA Healthcare’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since HCA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HCA for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HCA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on HCA Healthcare. You can find everything you need to know about HCA Healthcare in the latest infographic research report. If you are no longer interested in HCA Healthcare, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.