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HCA Healthcare, Inc. (HCA), a leading player in the healthcare industry, was founded in 1968 and is headquartered in Nashville, Tennessee. With a market cap of $82.9 billion, HCA operates one of the largest networks of healthcare facilities in the U.S., including hospitals, outpatient centers, and surgery centers. The company provides various services, from emergency care and diagnostic testing to surgical procedures and rehabilitation.
Companies worth $10 billion or more are typically considered “large-cap stocks,” HCA Healthcare fits this category comfortably, with a market cap well above this threshold. This reflects its significant size, influence, and leadership in the healthcare industry. Operating over 180 hospitals and over 2,000 healthcare facilities across the United States, HCA has established a robust presence in the healthcare sector.
Despite its strengths, HCA Healthcare shares have faced significant challenges. After hitting a 52-week high of $417.14 on Oct. 18, they have slipped 21.6%. Over the past three months, HCA stock declined 16.7%, lagging behind the iShares U.S. Healthcare Providers ETF (IHF), which dipped just 6.1%.
However, in the longer term, HCA gained 20.9% on a YTD basis, outperforming IHF’s 4.1% returns. Over the past 52 weeks, HCA's 31.4% gain surpasses the IHF's 9.3% increase.
To confirm the recent bearish trend, HCA has traded below its 50-day moving average since late October and below its 200-day moving average since mid-November.
HCA stock declined by 8.9% following the release of its Q3 earnings on Oct. 25. The company reported revenue of $17.49 billion, which aligns with analyst expectations and represents a 7.9% increase year-over-year. Non-GAAP EPS surpassed estimates, coming in at $5.50 compared to the consensus forecast of $4.97.
Adjusted EBITDA for the quarter rose to $3.26 billion, up from $2.88 billion in the prior-year period, reflecting ongoing operational growth despite the market's negative response. Management reaffirmed its 2024 guidance, indicating that performance will trend toward the lower end of the range due to hurricane-related impacts. Projected capital expenditures for the year remain unchanged at $5 billion.
Its rival, Universal Health Services, Inc. (UHS), has soared 51% over the past 52 weeks and gained 34.5% on a YTD basis, outpacing HCA’s gains over both time frames.
Despite underperforming industry peers recently, HCA Healthcare remains a favored stock among Wall Street analysts. The stock holds a consensus "Moderate Buy" rating from 25 analysts and has a mean price target of $409, suggesting a potential upside of 25% from its current price.
