Universal Health Services Inc. (UHS) was a big mover last session with its shares rising nearly 8% on the day. The upside was a result of the U.S. Supreme Court upholding its ruling on ObamaCare subsidies, which should benefit hospital stocks like Universal Health on grounds of lower bad debt and uncompensated care. This development led to far more shares changing hands yesterday than in a normal session. This breaks the recent trend of the company as the stock is now trading above the past one month’s volatile price range of $126.46 to $135.17.
This chain of acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers has seen no estimate revision in the last 30 days. However, the Zacks Consensus Estimate has moved up over the same period. This suggests solid trading potential at the company. So make sure to keep an eye on this stock going forward to see if yesterday’s jump can turn into more strength down the road.
Universal Health currently has a Zacks Rank #2 (Buy) while its Earnings ESP is negative.
Investors interested in the Med-Hospitals industry may consider Tenet Healthcare Corp. (THC) which carries the same Zacks Rank as Universal Health.
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