Latest news with #UniversalHealthServices
Yahoo
5 hours ago
- Business
- Yahoo
Why Universal Health Services (UHS) Shares Are Trading Lower Today
Shares of hospital management company Universal Health Services (NYSE:UHS) fell 5.7% in the afternoon session after Chief Financial Officer Steve Filton noted during a recent conference that procedural volumes (an important driver of hospital revenue) "have been slower to recover back to historical levels than we might have imagined." Filton also voiced concern over the Trump administration's proposed federal spending bill, particularly its implications for healthcare funding. Since UHS derives a significant portion of its revenue from government programs like Medicare and Medicaid, the anticipated cuts to Medicaid could significantly affect the company, especially in regions with high dependency on public healthcare funding. The shares closed the day at $177.76, down 6.2% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Universal Health Services? Access our full analysis report here, it's free. Universal Health Services's shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The previous big move we wrote about was 28 days ago when the stock gained 5.9% after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains. However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels. Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism. The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand. Universal Health Services is down 1.1% since the beginning of the year, and at $177.77 per share, it is trading 26.4% below its 52-week high of $241.52 from September 2024. Investors who bought $1,000 worth of Universal Health Services's shares 5 years ago would now be looking at an investment worth $1,628. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. 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
Yahoo
6 hours ago
- Business
- Yahoo
3 Healthcare Stocks in Hot Water
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry's returns - over the past six months, healthcare stocks have collectively shed 12.3%. This drawdown was noticeably worse than the S&P 500's 1.9% loss. Investors should tread carefully as the influx of venture capital has also ushered in a new wave of competition. Keeping that in mind, here are three healthcare stocks we're swiping left on. Market Cap: $12.17 billion With a network spanning 39 states and three countries, Universal Health Services (NYSE:UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico. Why Are We Hesitant About UHS? Poor comparable store sales performance over the past two years indicates it's having trouble bringing new patients into its facilities Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.2 percentage points Free cash flow margin shrank by 3.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Universal Health Services's stock price of $188.81 implies a valuation ratio of 9.5x forward P/E. Dive into our free research report to see why there are better opportunities than UHS. Market Cap: $512.5 million With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE:OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients. Why Does OMI Give Us Pause? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.2% for the last two years Underwhelming 3.8% return on capital reflects management's difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Owens & Minor is trading at $6.67 per share, or 3.7x forward P/E. If you're considering OMI for your portfolio, see our FREE research report to learn more. Market Cap: $132.8 billion With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions. Why Are We Cautious About PFE? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Free cash flow margin shrank by 8.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Diminishing returns on capital suggest its earlier profit pools are drying up At $23.40 per share, Pfizer trades at 7.8x forward P/E. To fully understand why you should be careful with PFE, check out our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
7 hours ago
- Business
- Yahoo
Universal Health Services Stock Sinks as CFO Says Post-Covid Care Recovery Has Slowed
Universal Health Services shares declined on Monday after the hospital company's CFO said the volume of care people are seeking has declined. After surging coming out of the pandemic, voluntary and surgical procedure volume is down, CFO Steve Filton said. The company expects its acute care business to return to its pre-COVID profit margins in the next 18 to 24 Health Services (UHS) shares sank after the hospital operator's CFO made comments at an industry conference about the company's outlook for volume of care it provides. Shares of UHS were down nearly 6% in Monday-afternoon trading. CFO Steve Filton said at a conference that the company and other healthcare competitors have seen "somewhat softer procedural or surgical volumes" in recent quarters, according to a transcript provided by AlphaSense. Coming out of the pandemic, companies like UHS saw a boom in voluntary procedures as Americans got caught up on care they may have put off, Filton said. Now, however, that volume of care has slowed, with Filton saying it has been "slower to recover back to historical levels than than we might have imagined and expected." Revenue has stayed stable for UHS because they have raised prices to offset the lower volume of care people are seeking, but Filton said the company thinks the variables of price and procedural volume will get closer to historical averages over time. The CFO said the company expects margins in its acute care business to return to pre-pandemic levels over the next 18 to 24 months. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
7 hours ago
- Business
- Yahoo
IBM all-time high, Universal Health falls, Topgolf Callaway rises
Market Domination co-host Yahoo Finance host Julie Hyman tracks today's top moving stocks and biggest market stories in this Market Minute. IBM (IBM) stock hit an all-time high and surpassed a $250 billion market cap. Universal Health Services (UHS) stock is under pressure after the company presented at the Goldman Sachs Global Healthcare Conference. Topgolf Callaway (MODG) stock is surging after a board member purchased $2.5 million in shares last week. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute.
Yahoo
14 hours ago
- Business
- Yahoo
1 Safe-and-Steady Stock on Our Buy List and 2 to Question
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up. Rolling One-Year Beta: 0.63 Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders. Why Do We Think SNDR Will Underperform? Customers postponed purchases of its products and services this cycle as its revenue declined by 8.5% annually over the last two years Earnings per share fell by 10% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Waning returns on capital imply its previous profit engines are losing steam Schneider's stock price of $24.10 implies a valuation ratio of 24.6x forward P/E. Dive into our free research report to see why there are better opportunities than SNDR. Rolling One-Year Beta: 0.46 With a network spanning 39 states and three countries, Universal Health Services (NYSE:UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico. Why Are We Wary of UHS? Poor comparable store sales performance over the past two years indicates it's having trouble bringing new patients into its facilities Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.2 percentage points 3.1 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Universal Health Services is trading at $189.39 per share, or 9.6x forward P/E. To fully understand why you should be careful with UHS, check out our full research report (it's free). Rolling One-Year Beta: 0.21 Serving both the DIY customer and professional mechanic, O'Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers. Why Do We Love ORLY? Comparable store sales rose by 4.5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 51.3% Strong free cash flow margin of 12% enables it to reinvest or return capital consistently At $1,382 per share, O'Reilly trades at 30.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
