Posted on September 26th, 2022
HCA Healthcare, Inc. (HCA) experienced stock fluctuation over the past year but has seen growth in recent months. HCA’s stock underperformed the S&P 500, falling by approximately 21% year-to-date compared to the S&P’s loss of about 10%. However, hedge funds were buying, and the health care services company was added to the WhaleWisdom Whale 100 Index on August 16, 2022.
HCA Healthcare owns and operates healthcare facilities across the United States and the United Kingdom. Its medical facilities include a range of hospitals, medical clinics, and ambulatory care sites, offering inpatient care, intensive care, cardiac care, diagnostic, and emergency services. HCA Healthcare’s potential for growth depends upon patient volume and revenue collected from patients and third-party insurance payers. The Coronavirus pandemic has stressed HCA Healthcare and the healthcare industry, contributing to surges in some areas of business, declines in others, and rising medical costs.
Hedge Funds Are Buying
HCA Healthcare saw a mixed response from hedge funds and institutions in the second quarter of 2022. Hedge Funds added to their portfolios in the second quarter, and the aggregate 13F shares increased to approximately 69.6 million from 62.7 million, a gain of about 11.0%. Overall, 31 hedge funds created new positions, 90 added, 39 exited, and 64 reduced their stakes. Institutions adjusted their portfolios, lowering their holdings by about 4.8% to 187.1 million shares.
Analysts expect to see revenue rise through 2023 with year-over-year growth that could increase revenue to $63.4 billion by December 2023. Analysts are also optimistic about earnings and predict earnings per share of $17.26 by December 2022 and $19.05 by December 2023. The company’s 13F metrics show a span of upward mobility between 2012 and 2022, demonstrating HCA Healthcare’s investment potential.
Analysts Raise Price Targets
Analyst John Ransom of Raymond James & Associates raised the firm’s price target on HCA Healthcare to $250 from $230 and kept an Outperform rating on shares following an analysis of second quarter results and labor trends. SVB Securities analyst Whit Mayo held an Outperform rating on HCA Healthcare’s shares and raised the firm’s price target to $259 from $240. Ann Hynes of Mizuho Securities Co. maintained a Buy rating on shares and raised their firm’s price target to $230 from $210.
Favorable Outlook Beyond 2022
HCA Healthcare’s growth history has been strong, and hedge funds are bullish on the stock. Past trends and analysts’ predictions for increased earnings bring optimism for the future. HCA Healthcare’s facilities and services will likely see continued demand, and investors may see the stock as an excellent long-term investment.