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Yahoo
2 days ago
- Business
- Yahoo
Zacks Industry Outlook Highlights HCA Healthcare, Tenet Healthcare, Universal Health and Community Health Systems
For Immediate Release Chicago, IL – July 22, 2025 – Today, Zacks Equity Research discusses HCA Healthcare, Inc. HCA, Tenet Healthcare Corp. THC, Universal Health Services, Inc. UHS and Community Health Systems, Inc. CYH. Industry: Hospitals Link: The Zacks Medical-Hospital industry faces mounting challenges, including rising labor costs, supply expenses, regulatory pressures and tightening budgets. Workforce burnout and cybersecurity risks continue to strain operations, while technological innovations offer long-term efficiency gains. Despite near-term headwinds, growing patient volumes may support gradual through mergers and acquisitions remains a key strategy, allowing hospitals to scale operations and increase market share in a fragmented landscape. Leading players HCA Healthcare, Inc., Tenet Healthcare Corp., Universal Health Services, Inc. and Community Health Systems, Inc. are demonstrating resilience by optimizing operations and expanding strategically to stay competitive in a complex and evolving healthcare environment. Industry Overview The Zacks Medical-Hospital industry comprises for-profit hospital companies that provide healthcare through different types of hospitals, such as acute care, rehabilitation and psychiatric. These hospital entities are engaged in internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, telehealth services, mental health care and diagnostic and emergency services. Revenues of these companies depend on inpatient occupancy levels, medical and ancillary services ordered by physicians and provided to patients, and the volume of outpatient procedures. These hospital companies receive payments for patient services from the government under the Medicare program, Medicaid, or similar programs, managed care plans (including plans offered through the American Health Benefit Exchanges), private insurers and directly from patients. 4 Key Trends to Watch in the Hospital Industry Elective procedures are on the rise, contributing to increased patient volumes across hospitals. U.S. Census Bureau projections show the 65+ population will grow from 17.3% in 2022 to 22.8% by 2050, amplifying demand for healthcare. Health spending is projected to hit $5.3 trillion by 2025, according to the Peterson-KFF Health System Tracker. However, technological advancements are likely to accelerate a shift from inpatient care to outpatient, ambulatory and home-based services, leaving many hospitals with underused beds and a heavy fixed-cost burden. Labor shortage, higher wages, supply chain disruptions and escalating benefit costs continue to squeeze hospital margins. In response, providers are embracing automation, refining staffing models, and renegotiating supplier contracts to manage expenses. Efforts to reduce reliance on contract labor are gaining traction, although burnout challenges persist. Meanwhile, cybersecurity threats are prompting higher insurance premiums, adding to financial strain. A new $50 billion federal fund aims to support rural and underserved hospitals, but several experts note it may fall short of covering broader funding gaps tied to Medicaid reimbursement changes. Hospitals are investing heavily in AI, automation, and real-time analytics to streamline care delivery and reduce operational inefficiencies. These tools are improving clinical outcomes, enhancing patient engagement, and supporting long-term cost savings. Simultaneously, telehealth, accelerated by the pandemic, has become a permanent and vital component of care, particularly for remote and underserved populations. M&A activity has rebounded strongly post-pandemic, as hospitals seek scale, efficiency, and financial resilience. With the industry still highly fragmented, consolidation is being driven by economic recovery, regulatory clarity and the need to adapt to changing care models. Strategic partnerships, technology-driven collaborations, and innovative delivery models are helping hospitals expand capacity and sharpen their competitive edge. Zacks Industry Rank Shows Bearish Outlook The group's Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, signals challenging near-term prospects. The Zacks Medical-Hospital industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #181, which places it in the bottom 26% of nearly 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming pessimistic about this group's earnings growth potential. As a matter of fact, the industry's earnings estimates for 2025 have gone down 0.2% since February-end. Despite the dull near-term prospects of the industry, we will present a few stocks that you may want to watch. But it's worth taking a look at the industry's shareholder returns and current valuation first. Industry Lags S&P 500 But Outperforms Sector The Zacks Medical-Hospital industry has underperformed the Zacks S&P 500 composite while outperforming the broader Medical sector in a year. The industry has gained 4.2% over this period, underperforming the S&P 500's appreciation of 13.1% and outperforming the broader sector's slide of 17.6%. Industry's Current Valuation On the basis of the trailing 12-month EV/EBITDA (Enterprise Value/ Earnings Before Interest Tax Depreciation and Amortization) ratio, which is commonly used for valuing hospital stocks, the industry trades at 7.84X compared with the S&P 500's 17.79X and the sector's 9.72X. Over the past five years, the industry has traded as high as 9.55X and as low as 6.45X, with a median of 8.03X. 4 Hospital Stocks Worth Your Attention HCA Healthcare: The company operates general and acute care hospitals and is well-positioned to benefit from rising patient volumes. Growth in inpatient surgeries, ER visits, and telemedicine is boosting performance and diversifying revenue. Strategic acquisitions and ongoing dividends and buybacks reflect its focus on expansion and shareholder returns. The Zacks Consensus Estimate for one of the biggest for-profit publicly traded hospitals' 2025 EPS indicates 15% year-over-year growth. HCA Healthcare beat earnings estimates in each of the past four quarters, the average surprise being 7.1%. The consensus mark for 2025 revenues signals a 5.7% increase from a year ago. Shares of the company have gained 20.3% over the year-to-date period. It currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Tenet Healthcare Corporation: The company operates a wide network of hospitals and facilities, with strong revenue growth driven by its Ambulatory Care and Hospital segments. The USPI unit remains a core growth engine, supported by strategic tuck-in acquisitions that continue to enhance its market position. The Zacks Consensus Estimate for Tenet Healthcare's 2025 and 2026 bottom line indicates 7.2% and 7% year-over-year growth. It beat earnings estimates in all the past four quarters, the average surprise being 26.4%. The consensus mark for 2025 and 2026 revenues is pegged at $20.9 billion and $21.9 billion, signaling an increase from $20.7 billion in 2024. Shares of the company have gained 38.7% over the year-to-date period. It currently has a Zacks Rank #3. Universal Health Services: The company operates acute care hospitals, outpatient centers, and behavioral health facilities, with specialties including autism, addiction, and military-related conditions. Growth is supported by rising patient days, network expansion, added licensed beds and strategic behavioral health joint ventures. The Zacks Consensus Estimate for Universal Health's 2025 and 2026 bottom line is pegged at $19.43 and $21.10 per share, respectively, up 17% and 8.6% year over year, respectively. It beat earnings estimates in three of the past four quarters and missed once, the average surprise being 13.8%. The consensus mark for 2025 and 2026 revenues indicates 8% and 5.2% year-over-year increases. Although shares of Universal Health have declined 5.9% over the year-to-date period, its improving operations are expected to support a future rebound. It currently sports a Zacks Rank #3. Community Health Systems: It operates a national network of acute care hospitals and outpatient centers, benefiting from higher occupancy rates and a growing telehealth focus. It is expanding through hospital acquisitions, enhancing specialty services, and improving efficiency. Strategic divestments of non-core assets aim to boost long-term profitability and cash flow, despite potential short-term impact. The Zacks Consensus Estimate for Community Health Systems' 2025 and 2026 bottom lines indicates 69.9% and 142.1% year-over-year improvements, respectively. The consensus mark for 2025 and 2026 revenues is pegged at $12.3 billion and $12.8 billion, respectively. Shares of Community Health Systems have gained 20% in the past week. It has a Zacks Rank #3 at present. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Community Health Systems, Inc. (CYH) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Forbes
14-07-2025
- Business
- Forbes
What Really Happens When Your Credentials Are Compromised
Chris Bowen is the CISO and founder at ClearDATA. Chris leads ClearDATA's privacy, security and compliance strategies. getty It started with a jolt on a quiet Sunday in late April: Microsoft Defender for Identity began firing off alerts to customers around the world, warning them that their credentials had been compromised. Security teams sprang into action—revoking access, triggering incident response protocols and notifying stakeholders. The only problem? There was no breach. The alerts were false positives, triggered by a configuration issue that Microsoft later resolved. It wasn't a breach, but it felt like one. The incident is a cautionary tale. Whether the compromise is real or the result of faulty telemetry, the consequences—panic, downtime, reputational risk—are very real. In a world where credential-based attacks are now the top vector for breaches, organizations cannot afford confusion. The Cost Of Compromised Credentials The healthcare sector, with its troves of protected health information (PHI), is a prime target. A single set of stolen credentials can provide bad actors with an open door to sensitive systems, leading to ransomware attacks, data exfiltration, regulatory fines and reputational harm. In 2020, hackers gained access to Universal Health Services (UHS) systems through compromised login information. The result was catastrophic: Ambulances were rerouted, surgeries were delayed and electronic health records were inaccessible for weeks. The breach ultimately cost UHS over $67 million in recovery and lost revenue. It's not just healthcare. Colonial Pipeline's 2021 ransomware attack originated from a single compromised VPN credential. The attack caused widespread fuel shortages across the East Coast and led to a $4.4 million ransom payment. Had multifactor authentication (MFA) been in place, the attackers might never have gained access. The Real Problem: Identity Overload The Microsoft false alarm raises an uncomfortable question: How confident are we in our ability to distinguish real breaches from noise? Many organizations lack a unified identity governance strategy. They are drowning in identities—with each cloud platform, software-as-a-service (SaaS) app and remote contractor introducing new vulnerabilities. Now more than ever, identity is the new perimeter. We must become more rigorous in how we think about access, especially in regulated environments where a misstep isn't just expensive—it's also illegal. What 'Zero Trust' Misses—And What's Next "Zero trust" has become the de facto rallying cry in cybersecurity, yet its overuse has eroded its meaning. Rather than chase buzzwords, organizations should pivot toward a principle I call "Prove First, Permit Later." It's not just about denying access until proven trustworthy—it's about continuously verifying trust even after access is granted. This requires robust identity intelligence, behavioral monitoring and dynamic authentication controls—not just MFA boxes checked once at login. Four Lessons From The Field From the Microsoft mix-up to real-world calamities, there are critical takeaways for any security-conscious organization: 1. Treat identity as a first-class citizen. Don't just audit roles—understand how credentials are used across the organization. 2. Automate your response. When a credential is flagged, your detection system should instantly trigger isolation, containment and human review. 3. Monitor behavior post-authentication. Just because someone got in doesn't mean they belong there. 4. Educate and empower users. Most breaches start with phishing. Continuous training remains a vital front line. How We Turned A Scare Into A Strategy A few years ago, after investigating what appeared to be a credential misuse event tied to a privileged cloud admin account, we realized there was no unified view of identity usage across our environments. Each platform had its own siloed logs and authentication protocols. Instead of waiting for a genuine compromise, we used the event as a turning point. We launched a cross-functional initiative to build and implement a governance framework that mapped every privileged identity to a role and a business owner, established behavioral baselines using cloud-native tools and introduced a rules engine to dynamically trigger alerts or revoke access when anomalies were detected. One concrete example: We linked suspicious login activity to contextual triggers like time of day, location and workload type, and we automated policy enforcement using behavioral analytics. When a developer's credentials were used to launch a resource in an unfamiliar region at an unusual hour, the system automatically revoked the session and sent an alert to the security engineering team. We also redesigned our onboarding process to enforce least privilege by default and required alerting and review of access by business stakeholders. This provided our compliance and audit teams with real-time evidence of identity control maturity. Looking Ahead The Microsoft incident didn't lead to a breach, but it did offer a glimpse into how quickly confusion can spiral. For every real credential compromise, there are hundreds of false alarms. For every false alarm, there's a real one that goes unnoticed. In today's threat landscape, verifying identities isn't enough. You need a system that can prove context, track behavior and revoke access dynamically before credentials become compromised. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
04-07-2025
- Business
- Yahoo
What to Expect From Universal Health Services' Next Quarterly Earnings Report
King of Prussia, Pennsylvania-based Universal Health Services, Inc. (UHS) owns and operates acute care hospitals, and outpatient and behavioral health care facilities. Valued at a market cap of $12 billion, the company's range of services include general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and behavioral health services. It is expected to announce its fiscal Q2 earnings for 2025 on Wednesday, Jul. 23. Prior to this event, analysts project this healthcare company to report a profit of $4.87 per share, up 13% from $4.31 per share in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $4.84 per share in the previous quarter outpaced the consensus estimates by 11%. Is UnitedHealth Stock a Buy, Sell, or Hold for July 2025? Michael Saylor Says 'You'll Wish You'd Bought More' Bitcoin as MicroStrategy Doubles Down Is Microsoft Stock About to Go Nuclear? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the full year, analysts expect UHS to report EPS of $19.43, up 17% from $16.61 in fiscal 2024. Furthermore, its EPS is expected to grow 8.9% year-over-year to $21.16 in fiscal 2026. UHS has declined marginally over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 13% return over the same time frame. However, it has outpaced the Health Care Select Sector SPDR Fund's (XLV) 6.3% downtick over the same time period. On Apr. 28, UHS released its Q1 results, and its shares closed down marginally in the following trading session. The company's overall revenue improved 6.7% year-over-year to $4.1 billion but fell short of the consensus estimates by nearly 1%. Meanwhile, on the earnings front, due to favorable pricing and margin improvement, the company's adjusted EPS surged 30.8% year-over-year to $4.84 and surpassed the analyst estimates by 11%. Wall Street analysts are moderately optimistic about UHS' stock, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, eight recommend "Strong Buy," and 11 advise 'Hold.' The mean price target for UHS is $226.19, which indicates a 22.6% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
24-06-2025
- Business
- Yahoo
Universal Health Services Stock: Is UHS Outperforming the Healthcare Sector?
Pennsylvania-based Universal Health Services, Inc. (UHS) owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. With a market cap of $11.2 billion, Universal Health operates through Acute Care Hospital Services and Behavioral Health Care Services segments. Companies worth $10 billion or more are generally described as "large-cap stocks." Universal Health fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical care facilities industry. Along with above mentioned services, it also provides commercial health insurance and various management services. The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. Warren Buffett's Berkshire Hathaway Now Pays 5% of All Corporate Income Taxes in America Meta's Mark Zuckerberg Says the Technology They're Developing Will 'See What You See and Hear What You Hear' Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! UHS touched its all-time high of $243.25 on Sep. 24, 2024, and is currently trading 28.7% below that peak. Over the past three months, UHS stock has dropped by a marginal 36 bps, outperforming the Health Care Select Sector SPDR Fund's (XLV) 9.9% decline during the same time frame. UHS has performed slightly better than the broader healthcare sector over the longer term as well. UHS stock has dropped 3.3% on a YTD basis and 8.2% over the past 52 weeks, compared to XLV's 3.9% decline in 2025 and 10% plunge over the past year. UHS has traded consistently below its 200-day moving average since early December 2024 and below its 50-day moving average since earlier this month. Universal Health Services' stock prices observed a marginal dip in the trading session after the release of its mixed Q1 results on Apr. 28. While the company's Acute Care segment's performance remained robust, the Behavioral Health Care segment's performance remained lackluster. In its Acute Care segment, UHS reported a 2.4% year-over-year increase in adjusted admissions and a 2.5% increase in net revenue per adjusted admission. Although the Behavioural segment's net revenue per adjusted admission increased by 7.2%, its admissions themselves dropped by 1.6%. This led to a 6.7% year-over-year growth in overall revenues to $4.1 billion, which missed the Street's expectations by 1.1%. However, driven by favorable pricing and margin improvement, the company's adjusted EPS surged 30.8% year-over-year to $4.84, surpassing the consensus estimates by 11%. Meanwhile, UHS has notably underperformed its peer Encompass Health Corporation's (EHC) 30.2% surge in 2025 and 41.7% returns over the past 52 weeks. Among the 19 analysts covering the UHS stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $226.19 suggests a 30.4% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
23-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Universal Health Services's Q1 Earnings Call
Universal Health Services delivered first quarter results that missed Wall Street's revenue expectations but exceeded profit forecasts, with management attributing the mixed outcome to strong expense controls and stable demand across its hospital segments. CFO Steve Filton noted that acute care revenues benefited from effective operating cost management and positive contributions from new facilities like West Henderson Hospital. However, same-facility behavioral health patient days were flat, as winter weather and the leap year impacted volumes early in the quarter. Management acknowledged that cash flow was impacted by delayed Medicaid supplemental payments, but emphasized that these timing issues do not reflect underlying business health. Is now the time to buy UHS? Find out in our full research report (it's free). Revenue: $4.1 billion vs analyst estimates of $4.15 billion (6.7% year-on-year growth, 1.2% miss) Adjusted EBITDA: $603.2 million vs analyst estimates of $569 million (14.7% margin, 6% beat) Operating Margin: 11.1%, in line with the same quarter last year Same-Store Sales rose 2.4% year on year (4.5% in the same quarter last year) Market Capitalization: $11.06 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Justin Lake (Wolfe Research) asked about the cadence of behavioral health volume recovery after winter disruptions. CFO Steve Filton replied that March showed improvement and full-year targets remain achievable if trends continue. Sarah James (Cantor Fitzgerald) inquired about the timing and scale of Nevada's Medicaid payments. Filton clarified that the Q1 payment was for the first quarter only, and future receipts will depend on regulatory approvals. Andrew Mok (Barclays) questioned the impact of potential tariffs on supply chain costs. Filton explained that most purchases are insulated from tariffs and the company is monitoring vendor practices but has not seen material pressure yet. Matthew Gillmor (KeyBanc Capital Markets) sought detail on expense management, especially labor costs. Filton reported premium labor costs have stabilized, and expense controls should remain sustainable barring unforeseen external pressures. Pito Chickering (Deutsche Bank) asked about improvements in supply cost leverage and whether Q1 results were due to patient mix or better management. Filton attributed results to both a higher mix of medical cases and ongoing supply chain optimization. In upcoming quarters, the StockStory team will watch (1) the pace of behavioral health volume recovery as weather and seasonal factors dissipate, (2) the approval and cash flow timing of Medicaid supplemental payment programs in key states like Tennessee and D.C., and (3) the impact of ongoing cost control initiatives on margins. Developments in healthcare policy and reimbursement rates will also be important to monitor. Universal Health Services currently trades at $171.70, in line with $173.18 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
