What's Driving HCA Healthcare Inc's Surprising 28% Stock Rally?

HCA Healthcare Inc (HCA, Financial) has experienced a notable uptick in its stock price, with a 27.56% gain over the past three months, bringing its market capitalization to $80.34 billion. Despite a slight 0.55% loss over the past week, the current price of $300.16 reflects a robust short-term performance. When compared to the GF Value of $298.96, HCA is considered fairly valued, a shift from being modestly undervalued three months ago when the GF Value was at $285.66. This valuation change indicates a positive market adjustment to the company's intrinsic worth.

Introduction to HCA Healthcare Inc

HCA Healthcare Inc, a leader in the Healthcare Providers & Services industry, operates the largest collection of acute-care hospitals in the United States. With a vast network that includes 182 hospitals, 126 outpatient surgery centers, and numerous other healthcare facilities, HCA has established a significant presence in the healthcare sector. The company's expansive footprint across 20 states and a presence in England underscores its strategic positioning in the market. 1752350305581953024.png

Assessing HCA's Profitability

HCA's Profitability Rank stands at a perfect 10/10, reflecting its exceptional performance relative to peers. The company's Operating Margin of 14.63% is impressive, surpassing 81.37% of 644 companies in the industry. Although the reported Return on Equity (ROE) of 10000.00% is not applicable, HCA's Return on Assets (ROA) at 10.79% and Return on Invested Capital (ROIC) at 17.09% are both strong indicators of efficient asset and capital utilization. These figures place HCA ahead of the majority of its competitors, with a consistent track record of profitability over the past decade. 1752350328319275008.png

Exploring HCA's Growth Trajectory

The company's Growth Rank is also at the maximum score of 10/10. HCA has demonstrated solid growth, with a 3-Year Revenue Growth Rate per Share of 11.50% and a 5-Year Rate of 11.20%. These figures are commendable when compared to industry counterparts. The estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 4.96%, indicating a positive outlook. Earnings growth is also robust, with a 3-Year EPS without NRI Growth Rate of 14.70% and a 5-Year Rate of 21.10%. The future EPS Growth Rate is estimated at 9.75%, suggesting continued upward momentum. 1752350347264946176.png

Significant Stakeholders in HCA

Notable investors have taken substantial positions in HCA, signaling confidence in the company's prospects. First Eagle Investment (Trades, Portfolio) holds 4,506,928 shares, representing 1.68% of the company. Vanguard Health Care Fund (Trades, Portfolio) owns 2,796,119 shares, accounting for 1.04%, and Diamond Hill Capital (Trades, Portfolio) has a stake of 1,594,344 shares, or 0.6%. These investments by major holders underscore the attractiveness of HCA to savvy investors.

Competitive Landscape

When compared to its competitors, HCA stands out with its $80.34 billion market cap. Universal Health Services Inc (UHS, Financial) has a market cap of $10.88 billion, DaVita Inc (DVA, Financial) at $9.98 billion, and Chemed Corp (CHE, Financial) at $8.96 billion. HCA's market cap dwarfs these figures, highlighting its dominant position in the healthcare industry.


In summary, HCA Healthcare Inc's recent stock performance has been impressive, with a significant 27.56% increase over the past three months. The company is currently fairly valued according to the GF Value, reflecting the market's recognition of its true worth. HCA's profitability and growth metrics are strong, with a perfect score in both Profitability and Growth Ranks. The confidence shown by major holders like First Eagle Investment (Trades, Portfolio), Vanguard Health Care Fund (Trades, Portfolio), and Diamond Hill Capital (Trades, Portfolio) further validates the company's financial health and growth potential. Compared to its competitors, HCA's market position is robust, suggesting a promising future for the company and its shareholders.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.


I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.