Jim Cramer Is Worried About HCA Healthcare, Inc. (HCA) Due To Medicaid Cuts
We recently published a list of . In this article, we are going to take a look at where HCA Healthcare, Inc. (NYSE:HCA) stands against other stocks that Jim Cramer discusses.
HCA Healthcare, Inc. (NYSE:HCA) is a mega-American hospital operator. Unlike its peer Tenet Healthcare, Cramer has discussed the firm in 2025. He remarked in March that he believed the shares had been punished enough. Since Cramer's comments, HCA Healthcare, Inc. (NYSE:HCA)'s shares have gained 11.9%. The stock jumped by 4.9% in mid-May as while Republicans did share their estimates to reduce healthcare spending, the reduction wasn't as drastic as some feared. However, a drop in spending is still on Cramer's mind when it comes to HCA Healthcare, Inc. (NYSE:HCA). Here's what he said:
'The ones I'm [inaudible] worried about, I'm worried about HCA. . .on the cutback in Medicaid. Because [it thrives] on Medicaid. . . .because they're gonna delay reimbursement or they're going to lower reimbursement. Because Medicaid, Medicaid is cut back.'
A team of healthcare professionals in lab coats and masks meeting at a hospital ward.
L1 Capital mentioned HCA Healthcare, Inc. (NYSE:HCA) in its Q1 2025 investor letter. Here is what the firm said:
'HCA Healthcare, Inc.'s (NYSE:HCA) share price partially rebounded in the March 2025 Quarter, and was the only company to positively contribute over 1% to the Fund's quarterly returns. We outlined in the December 2024 Quarterly Report that HCA's share price had over reacted to concerns that healthcare policy under the Trump administration would be materially adverse for HCA. We took advantage of the market concerns to add to our investment in HCA at a share price well below our assessment of fair value, and it was pleasing to see a partial recovery in the share price during the March 2025 quarter. Six other companies each positively contributed 0.5% or greater to the Fund's returns, across a diverse range of industries. We believe our unique approach to assessing quality businesses of varying size across a number of diversified sectors provides the opportunity to deliver strong risk adjusted returns in a range of market conditions.
Overall, HCA ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HCA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HCA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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ZURICH, June 06, 2025--(BUSINESS WIRE)--Regulatory News: UBS (NYSE:UBS) (SWX:UBSN): Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules UBS supports in principle most of the regulatory proposals the Swiss Federal Council published today.1 However, UBS strongly disagrees with the extreme increase in capital requirements that has been proposed. These changes would result in capital requirements that are neither proportionate nor internationally aligned. The proposals would require UBS to fully deduct investments in foreign subsidiaries from its CET1 capital. UBS would also need to fully deduct deferred tax assets on temporary differences (TD DTAs) and capitalized software from its CET1 capital. Furthermore, the proposals would necessitate an increase in prudential valuation adjustments (PVAs). 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UBS will actively engage in the consultation process with all relevant stakeholders and contribute to evaluating alternatives and effective solutions that lead to regulatory change proposals with a reasonable cost/benefit outcome. UBS will also evaluate appropriate measures, if and where possible, to address the negative effects that extreme regulations would have on its shareholders. As the largest truly global wealth manager and leading bank in Switzerland, with competitive global investment bank and asset management capabilities, UBS brings financial stability, expertise, economic benefits and international know-how to its home country and to all its clients globally. UBS remains committed to its diversified business model and its unique regional footprint as well as successfully completing the integration of Credit Suisse in the best interest of all stakeholders. UBS is reviewing the substantial amount of information published today and will share its further assessment in due course. Cautionary Statement Regarding Forward-Looking Statements This news release contains statements that constitute "forward-looking statements," including but not limited to management's outlook for UBS's financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS's judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS's expectations. In particular, the global economy may suffer significant adverse effects from increasing political tensions between world powers, changes to international trade policies, including those related to tariffs and trade barriers, and ongoing conflicts in the Middle East, as well as the continuing Russia–Ukraine war. UBS's acquisition of the Credit Suisse Group has materially changed its outlook and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities into the UBS structure is expected to continue through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable to achieve the cost reductions and business benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse and that the acquired business may have greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland is considering significant changes to its capital, resolution and regulatory regime, which, if proposed and adopted, may significantly increase our capital requirements or impose other costs on UBS. These factors create greater uncertainty about forward-looking statements. Other factors that may affect UBS's performance and ability to achieve its plans, outlook and other objectives also include, but are not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility and the size of the combined Group; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation and interest rate volatility in major markets; (iv) developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates, residential and commercial real estate markets, general economic conditions, and changes to national trade policies on the financial position or creditworthiness of UBS's clients and counterparties, as well as on client sentiment and levels of activity; 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(xiii) UBS's ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xv) UBS's ability to implement new technologies and business methods, including digital services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS's internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats; (xviii) restrictions on the ability of UBS Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS's operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xix) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS's ability to maintain its stated capital return objective; (xx) uncertainty over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and the possibility of conflict between different governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure or other natural or man-made event; and (xxiii) the effect that these or other factors or unanticipated events, including media reports and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. UBS's business and financial performance could be affected by other factors identified in its past and future filings and reports, including those filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December 2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on Contacts UBS Group AG and UBS AG Investor contactSwitzerland: +41-44-234 41 00Americas: +1 212 882 57 34 Media contactSwitzerland: +41-44-234 85 00UK: +44-207-567 47 14Americas:+1-212-882 58 58APAC: +852-297-1 82 00
